Karachi: Pakistan Income Enhancement Fund posted a return of 20.39% for the fiscal year ended June 30, 2024, slightly below its benchmark of 24.44%. The fund's performance was supported by improvements in Pakistan's macroeconomic stability, driven by a new Stand-by Arrangement (SBA) with the International Monetary Fund (IMF) that helped avert a potential default.

According to information available from the Pakistan Stock Exchange (PSX), the fund's net assets grew by 391.17%, reaching PKR 1,899.91 million as of June 30, 2024, compared to PKR 1,201.00 million in the previous year. The Net Asset Value (NAV) per unit increased from PKR 54.4171 to PKR 54.9344 during the same period.

Pakistan's economic recovery was underpinned by the caretaker government’s decisive measures to stabilize the currency and improve the trade deficit. By June 2024, the country had a foreign exchange reserve of USD 9.4 billion, reflecting an increase of USD 5.4 billion compared to the prior year, which largely came from IMF disbursements and inflows from friendly countries.

Inflation, which averaged 23.9% during FY2024, had been a major economic challenge, prompting the State Bank of Pakistan to raise the policy rate to 20.50% by June 2024. Despite this, GDP grew by 2.4%, with the agricultural sector contributing 6.3% growth.

Looking forward, the fund is optimistic about FY2025, with expectations of a 3.5% rebound in GDP growth. The government’s continued focus on maintaining a stable currency and the IMF’s involvement is anticipated to provide macroeconomic stability, particularly in the external sector.