Gold, stocks outshine property as Pakistan investors reap big gains in 2025

For millions of Pakistani investors, 2025 turned out to be an unexpectedly lucrative year, as gold and equities delivered outsized gains while traditional safe bets lagged behind, according to an analysis cited by Kamran Khan.

Speaking on his program “On My Radar,” Khan said the past 12 months created thousands of new millionaires and pushed many wealthy investors into the billionaire category, even as Pakistan’s economy moved slowly toward stability rather than a full recovery.

He said easing inflation, a sharp drop in interest rates and a relatively stable currency reshaped investor behavior across asset classes. The policy rate has fallen to 10.5%, less than half its previous peak, with further cuts widely expected.

In that environment, performance across investment options made clear where wealth was created — and where it was merely preserved.

A research report by Topline Securities showed that gold was the standout performer in 2025, delivering returns of about 73% in PKR terms. That gain surpassed all other major asset classes available to Pakistani investors.

Khan noted that gold has long been viewed in Pakistan as a hedge during periods of uncertainty rather than a growth asset. In 2025, however, global volatility and local macroeconomic improvement combined to turn that safe haven into a major profit driver.

The Pakistan Stock Exchange ranked second in wealth creation. Despite economic headwinds, the benchmark KSE-100 index rose about 48% including dividends, making equities the second-best performing asset class of the year.

The rally came during a period marked by fiscal tightening, high taxes and subdued consumer demand. Market analysts cited expectations of further interest rate cuts, improving corporate earnings and greater medium-term economic stability as key drivers behind the surge.

Real estate, traditionally seen as a top investment in Pakistan, slipped to third place in terms of returns. Topline Securities analyzed price movements in upscale areas of Karachi and Lahore to assess performance.

Commercial plot prices in the two cities rose by about 18%, while residential plot prices increased roughly 15%. House prices, however, posted an average gain of just 8%, reflecting weaker demand from end users.

Khan said plots still offered moderate returns, but slowing demand limited price appreciation for built homes, challenging long-held assumptions about property as the most reliable path to wealth.

For overseas Pakistanis, Roshan Digital Accounts and Naya Pakistan Certificates remained attractive. Investments in Naya Pakistan Certificates yielded around 22% returns in PKR and about 10% in dollar terms, appealing to investors seeking organized and relatively low-risk options.

By contrast, national savings schemes, government securities, money market funds and bank deposits delivered predictable but modest returns. Three-year Pakistan Investment Bonds yielded about 14%, while treasury bills and special savings certificates returned roughly 12%.

Money market funds averaged close to 11%, and bank savings deposits around 9%, significantly trailing gold and equities.

The year also disappointed dollar hoarders. Investment in the U.S. dollar generated only about 3% to 4% returns, while bitcoin and other cryptocurrencies — still unregulated in Pakistan — produced an estimated 4% loss locally.

Khan said 2025 underscored a broader lesson: Pakistan experienced gradual stability, not a full economic revival, and investors could no longer rely on instinct alone. The winners, he said, were those who distinguished between merely “safe” assets and truly productive investments.