Karachi: The Alhamra Islamic Income Fund has reported a moderate growth for the quarter ending September 30, 2026, according to the quarterly report released by MCB Investment Management Limited on October 30, 2026. The fund recorded a return of 5.14% in contrast to its benchmark return of 9.46%, reflecting a measured performance in a period marked by economic fluctuations.
The report, presented on behalf of the Board of Directors, highlighted an increase in the fund's net assets to Rs. 17,883 million from Rs. 16,529 million as of June 30, 2026, marking a 61.36% rise. The Net Asset Value (NAV) per unit experienced an increase to Rs. 107.6269 from an opening NAV of Rs. 106.2502 per unit, indicating a gain of Rs. 1.3767 per unit.
The fund's allocation strategy during this period leaned heavily on GoP Ijara Sukuk and cash, with exposures at 65.7% and 29.7%, respectively. This conservative allocation reflects the fund's strategic positioning amidst broader economic developments.
The economic backdrop for this quarter saw Pakistan's current account deficit narrowing to USD 543 million in the first two months of fiscal year 2027 as compared to USD 853 million in the corresponding period of the previous year. The trade deficit, however, widened by 18.8% year-on-year with a 4.0% rise in exports and an 11.4% increase in imports. Remittances showed robust growth of 14.7%, reaching USD 7.3 billion.
According to information available from the Pakistan Stock Exchange (PSX), despite the economic challenges, Pakistan's external position remained stable with the State Bank of Pakistan's foreign exchange reserves rising to USD 21.4 billion, up from USD 18.4 billion at the end of the last fiscal year. The local currency showed resilience, appreciating by 0.4% against the U.S. dollar to 277.1 during the quarter.
Inflation, as indicated by the Consumer Price Index, averaged 10.2% in the first quarter of fiscal year 2027, significantly up from 4.3% in the previous year. This increase was largely attributed to higher global oil prices affecting domestic fuel costs and broader consumer prices.
Pakistan's GDP growth for fiscal year 2026 was reported at 3.7%, with contributions from the agricultural sector at 2.9%, industrial sector at 3.5%, and the services sector at 4.1%. On the fiscal side, the Federal Board of Revenue's tax collection rose by 6.7% year-on-year in the first quarter of fiscal year 2027 to PKR 3,083 billion, surpassing the cumulative target by PKR 30 billion.
The report underscores the Alhamra Islamic Income Fund's performance amidst a complex economic environment, showcasing its strategic fund allocation and resilience in navigating the fiscal and economic challenges.