The economy is in the dumps. What asset classes have stood the test of time?

With the economy faltering, what is the best place to park your money? We assess multiple asset classes to unveil the return patterns

Recent economic headwinds and the latest fiscal budget may have left you feeling anxious or even distressed. However, amidst this turmoil, a surprising development emerged: the Pakistan Stock Exchange became the world’s best-performing bourse in Fiscal Year (FY) 2024.

The benchmark KSE-100 index delivered an impressive 89% annual return in rupee terms during FY24, with an even more remarkable 94% return in dollar terms.

This news might have many scratching their heads, given that the economy was struggling with uncertainty, political instability, and a foreign exchange crisis all these months.

While a detailed timeline of the national bourse’s performance would be interesting, we’ll save that for another time. Instead, we’re more intrigued by a different question: Have stocks consistently been the best-performing asset class in Pakistan, or is there more to the story?

To answer this, Profit presents a primer on the performance of various asset classes over multiple time periods, aiming to determine which has truly stood the test of time in the country.

 

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The content in this publication is expensive to produce. But unlike other journalistic outfits, business publications have to cover the very organizations that directly give them advertisements. Hence, this large source of revenue, which is the lifeblood of other media houses, is severely compromised on account of Profit’s no-compromise policy when it comes to our reporting. No wonder, Profit has lost multiple ad deals, worth tens of millions of rupees, due to stories that held big businesses to account.

Hence, for our work to continue unfettered, it must be supported by discerning readers who know the value of quality business journalism, not just for the economy but for the society as a whole.

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