Karachi: The Board of Directors of NBP Fund Management Limited has released the unaudited condensed interim financial statements for the NBP Government Securities Fund – II, specifically the NBP Government Securities Plan – VIII (NGSP-VIII), for the quarter ending September 30, 2025. The report highlights the fund’s performance amidst a challenging economic landscape driven by inflationary pressures and recent natural disasters.
During the July to September 2025 quarter, the State Bank of Pakistan (SBP) maintained the policy rate at 11%. Despite a rise in headline inflation to 5.6% in September from 3.0% in August, the average inflation for the first quarter eased to 4.2%, down from last year’s 9.2%. Core inflation showed a downward trend, although the recent floods disrupted food supply chains. The SBP projects average inflation for FY26 to remain within the 5%-7% target range, with a slight increase expected later in the year due to base effects.
Real GDP growth for FY26 is projected between 3.0% and 3.5%, falling short of government targets due to the adverse effects of agricultural losses from floods and ongoing inflationary pressures. However, the economy shows resilience, underpinned by policy reforms, improved fiscal discipline, and external sector stability. The current account deficit was USD 624 million for July-August, and foreign exchange reserves stood at USD 14.4 billion as of September 26, 2025, with projections to reach USD 17 billion by June 2026.
Sovereign debt markets remained stable, with Rs. 3.55 trillion raised through six T-Bill auctions against the maturity of Rs. 3.95 trillion and a target of Rs. 2.98 trillion. The SBP also conducted three fixed-rate and six floating-rate PIB auctions, realizing a total of Rs. 1.64 trillion and Rs. 558 billion, respectively. The macroeconomic landscape is stabilizing, with coordinated monetary and fiscal policies aiding in managing inflation and supporting economic recovery.
The NBP Government Securities Plan-VIII closed at Rs. 2,132 million, with the unit price increasing from Rs. 9.9835 since inception to Rs. 10.0976 on September 30, 2025. This reflects a return of 9.7% per annum, compared to a benchmark return of 10.7% per annum for the same period. The fund’s performance is net of management fees and other expenses. NGSP-VIII is classified as an Open-End Sovereign Income Scheme, aiming to provide investors with attractive returns by primarily investing in Government Securities.
The fund reported a total income of Rs. 25.20 million during the period, with total expenses amounting to Rs. 1.14 million, resulting in a net income of Rs. 24.06 million. The asset allocation as of September 30, 2025, supports the fund’s objective of delivering competitive returns to its investors. According to information available from the Pakistan Stock Exchange (PSX), the fund’s asset size and net asset value per unit reflect its moderate growth amidst prevailing economic conditions.
The Board of Directors has approved an interim cash dividend of 0.165% of the opening ex-NAV for the period ended September 2025, demonstrating their commitment to providing returns to unit-holders. The Board extends its gratitude to its unit-holders, the Securities & Exchange Commission of Pakistan, and the State Bank of Pakistan for their support, and acknowledges the dedication of its staff and Trustee in managing the fund effectively.