In a remarkable turn of events, Pakistan’s witnessed a notable performance in its assets classes throughout 2023, reshaping the financial landscape for investors. Leading the charge was the benchmark KSE 100 Index, providing an impressive gain of 53% from January 01, 2023, till December 22, 2023, with four trading sessions yet to unfold. This exceptional performance marks a significant comeback for Pakistan Equities, surpassing major asset classes that had lagged behind in previous years.
The US Dollar emerged as another favorite investment for local Pakistanis, delivering a substantial return of 25% in 2023. Moving from Rs. 226 to Rs. 283 in the interbank market and from Rs. 236 to Rs. 285 in the open market, the USD’s performance drew attention. For those opting for a 1-year term deposit at the year’s commencement, gains reached 29% at the interbank and 25% at the open market, factoring in a 4% return on USD deposits.
Investors in the Naya Pakistan US$ Certificate, a part of the Roshan Digital Account (RDA), experienced a noteworthy gain of 33% in PKR terms, propelled by the falling PKR value.
Gold, a consistent performer in recent years, continued its above-average returns by gaining 18% in 2023. The international market also witnessed an increase from US$ 1,826/ounce to US$ 2,065/ounce, adding to the allure of this precious metal.
Government T-Bills, amidst a tightening monetary policy, saw interest rates soar to record highs, resulting in a substantial 23% gain for investors in 2023. The report considered investments in 3-month T-Bills, actively reinvested every three months.
In response to high rates, many investors sought refuge in fixed-income low-risk avenues. The average bank saving rate held at 17% throughout 2023, while the National Savings 3-year Special Saving Certificate (SSC) offered a respectable gain of 13%. Local Asset Management Companies (AMCs) money market funds presented an attractive average return of 20% for the year.
Despite some investors remaining cautious in the property market, real estate in Karachi experienced a notable upswing according to Zeeman.com. Houses, residential, and commercial plots recorded increases ranging from 6% to 29% in 2023, adding an intriguing dynamic to the diversified investment landscape.
These standout performances across asset classes in Pakistan for 2023 not only highlight the resilience of the financial sector but also offer valuable insights for strategic investment planning in the years ahead.
Also Read: Economic Challenges: Pakistan’s 2023 Journey Towards Recovery
