Pakistan’s Islamic Mutual Funds Cross Rs. 2 Trillion Mark for the First Time

Sharia-compliant mutual funds in Pakistan continue to attract strong investment from individuals, associations of persons, and corporate investors, with total assets surpassing the Rs. 2 trillion mark for the first time.

According to data released by the Mutual Funds Association of Pakistan (MUFAP), the combined assets of Islamic fund managers reached Rs. 2.1 trillion by the end of February 2026, compared to Rs. 1.7 trillion recorded during the same period last year.

The milestone reflects consistent growth, as the sector had already crossed the Rs. 1 trillion mark by the end of 2024, highlighting a steady upward trend in Islamic investment products.

Sharia-compliant funds are broadly categorized into open-ended funds, pension funds, and exchange-traded funds (ETFs). These funds invest across various asset classes, including money market instruments, equities, and income-based securities, and are structured into multiple categories such as money market, equity, and income funds.

Analysts say investors seeking relatively stable and moderate returns are increasingly choosing mutual funds as a preferred avenue for savings and investment.

Overall, the mutual fund industry, comprising 24 asset management companies, recorded total assets of Rs. 4.35 trillion by the end of February 2026. Within this, conventional funds accounted for Rs. 2.25 trillion, compared to Rs. 2.1 trillion in the same period last year.

In addition to mutual funds, investors also showed interest in voluntary pension schemes, employer-sponsored pension plans, and exchange-traded funds, contributing to the sector’s overall growth.

Asset management companies affiliated with commercial banks continue to dominate the industry, benefiting from wider client networks and diversified investment channels, which give them an edge in attracting and managing funds.

According to MUFAP data, Al Meezan Investment leads the sector with assets under management of Rs. 701 billion. It is followed by NBP Fund Management with Rs. 551 billion, MCB Investment Management with Rs. 421 billion, UBL Fund Managers with Rs. 386 billion, HBL Asset Management with Rs. 358 billion, and Alfalah Asset Management with Rs. 335 billion.