Karachi: The Board of Directors of AL Habib Asset Management Limited has presented the audited financial statements for the funds managed under its umbrella for the fiscal year ending June 30, 2026. The report, dated September 29, 2026, highlights a robust conclusion to Pakistan's FY26, characterized by a provisional real GDP growth of 3.7%, up from 3.2% in FY25. Large-Scale Manufacturing (LSM) witnessed a significant expansion of 6.1%, recovering from a 0.7% contraction in the previous fiscal year.
Inflation, measured by the Consumer Price Index (CPI), rose to 7.1% in FY26 from 4.5% in FY25. This increase was attributed to the impact of Middle East conflicts on international crude oil prices, freight costs, and disruptions in the global supply chain. Despite regional diplomatic efforts achieving a sharp reversal in crude oil prices, the Monetary Policy Committee maintained the policy rate at 11.5% in July 2026, aiming to steer inflation back to the medium-term target range of 5.0% to 7.0%.
The fiscal year concluded with a current account deficit of USD 139 million, contrasting a surplus of USD 1.8 billion in FY25, due to a widened trade imbalance. However, enhanced workers' remittances and IT exports offset some adverse effects. Foreign exchange reserves of the State Bank of Pakistan (SBP) strengthened to USD 18.5 billion from USD 14.5 billion in the previous year, bolstered by installments from the International Monetary Fund and other borrowings.
Strict expenditure management resulted in a primary fiscal surplus of 2.9% of GDP in FY26. This stability prompted international rating upgrades and facilitated successful issuance of international bonds, further elevating the KSE-100 index. According to information available from the Pakistan Stock Exchange (PSX), these developments reflect positively on the financial markets.
The FY27 budget framework emphasizes enhancing business competitiveness through targeted tax relief and liquidity measures. Key structural drivers include a reduction in export tax to 1.25%, extension of a 0.25% concessional tax rate for the IT sector until 2029, and the removal of the Super Tax for certain business sectors.
The AL Habib Cash Fund (AHCF) achieved a net annualized return of 10.36%, with a gross income of Rs. 8,210.36 million. The AL Habib Money Market Fund (AHMMF) generated a return of 10.46%, boasting a gross income of Rs. 8,502.48 million. The AL Habib Islamic Cash Fund (AHICF) reported a 10.21% return, while the AL Habib Islamic Money Market Fund (AHIMM8) delivered a 9.61% return with a gross income of Rs. 58.43 million.
The AL Habib Income Fund (AHIF) also recorded a 10.36% return, while the AL Habib Government Securities Fund (AHGSF) achieved a 10.29% return. The AL Habib Sovereign Income Fund reported a gross income of Rs. 299.84 trillion, with significant contributions from government securities.
In the equity market, the AL Habib Stock Fund (AHSF) demonstrated a notable net return of 43.49%, supported by capital gains from equity investments, further underscoring the significant move in the market.
As AL Habib Asset Management Limited moves forward, the company's focus remains on maintaining fiscal discipline and advancing sovereign reforms to support sustainable growth, while geopolitical tensions and potential oil price increases remain key challenges.