Here Are The Top-Performing Assets in Pakistan in 2023

After lagging behind for the last few years, Pakistan Equities outperformed major asset classes in 2023.

The benchmark KSE 100 Index provided a gain of 53 percent (January 01, 2023, till December 22, 2023) with 4 trading sessions left in 2023. This gain is inclusive of dividends received during this period, according to a report by Topline Securities.

Another favorite investment for local Pakistanis has been the US Dollar in the last few years. In 2023 it provided a return of 25 percent gaining from Rs. 226 to Rs. 283 in the interbank market and 21 percent from Rs. 236 to Rs. 285 in the open market. If this amount is invested in a 1-year term deposit at the beginning of the year, the gain would have increased to 29 percent at the interbank dollar and 25 percent at the open market (assuming a return of 4 percent on USD deposits).

Similarly, the holder of Naya Pakistan US$ Certificate under Roshan Digital Account (RDA) also made 33 percent in PKR terms due to falling PKR value.

Gold that provided an above-average return in the last few years to local investors posted decent gains. In 2023 it gained from Rs. 157,836/10 grams to Rs. 186,900/10 grams providing a profit of 18 percent. In the international market, it also increased from US$ 1,826/ounce on December 30, 2022, to US$ 2,065/ounce on December 22, 2023.

Another widely discussed investment avenue has been Government T-Bills. Amid tightening monetary policy, the government has to raise interest rate rates to record highs. As a result, investors in T-Bill made a 23 percent gain in 2023. The report assumed investment in 3-month T-Bills (which were actively traded) being reinvested every 3 months.

Many investors moved to fixed-income low-risk avenues in 2023 due to high rates. Within the fixed-income market, the average bank saving rate remained at 17 percent in 2023 while the National Savings 3-year Special Saving Certificate (SSC) provided a gain of 13 percent. Local AMCs’ money market funds generated an average return of 20% in 2023.

While many investors remained out of the property market, as per Zeeman.com, real estate (Houses, Residential, and Commercial Plots) in Karachi went up 6-29 percent in 2023.