Gold and stocks lead Pakistan’s asset returns in 2025

Gold and equities emerged as Pakistan’s best-performing asset classes in 2025, delivering strong returns amid mixed performance across other investment avenues, according to a report by brokerage firm Topline Securities.

Gold recorded the highest gains during the year, generating a return of 73% between Jan. 1 and Dec. 24, 2025.

Domestic gold prices rose sharply from PKR 233,711 per 10 grams at the start of the year to PKR 405,402 per 10 grams, the report said. In international markets, gold prices also climbed, increasing from $2,612 an ounce on Dec. 31, 2024 to $4,503 an ounce on Dec. 26, 2025.

Pakistan’s benchmark KSE-100 Index posted the second-largest increase among major asset classes, rising 48% over the same period, with four trading sessions remaining in the year. The return includes dividends paid during 2025, Topline Securities noted.

Real estate, traditionally a preferred investment in Pakistan, delivered more moderate gains. Data from Zameen.com showed average prices of commercial and residential plots rose 18% in DHA Karachi and 15% in DHA Lahore, while house prices in both cities increased by an average of 8%.

Returns from Roshan Digital Account instruments were also notable. The Naya Pakistan PKR certificate generated a return of 22% in 2025, despite profit rates being reduced to 13% in March. Meanwhile, the U.S. dollar-denominated Naya Pakistan certificate delivered an equivalent return of 10% in rupee terms, the report said.

The U.S. dollar, another popular investment among local investors, delivered limited gains. Returns stood at around 1%, as the interbank exchange rate moved from PKR278 to PKR280, while the open-market rate rose from Rs280 to Rs281. Topline Securities said investing the same amount in a one-year foreign-currency term deposit would have produced a higher return of 3% to 4% in rupee terms.

Fixed-income and low-risk investments lagged behind equities and gold. The average bank savings rate stood at 9%, while the National Savings three-year Special Savings Certificate offered a return of 12%. Money market funds managed by local asset management companies delivered an average return of 11% during the year.

Returns on government securities moderated amid monetary easing. Pakistan Investment Bonds generated a return of 14%, while Treasury bill investors earned around 12%, assuming reinvestment in actively traded three-month bills. One-year T-bills also provided a return of about 12% in 2025, the report added.

An independent market analyst said the strong performance of gold and equities reflected a mix of global uncertainty and improving domestic sentiment.

“Gold benefited from both rising international prices and relative local currency stability, making it the top-performing asset for Pakistani investors,” the analyst said. “At the same time, equities rallied as easing inflation, lower interest rates and expectations of economic stabilization supported risk appetite.”

The analyst added that returns from fixed-income instruments moderated as monetary policy shifted toward easing, while limited exchange-rate movement kept gains on the U.S. dollar subdued.

“Investors who diversified across equities, gold and selective fixed-income products were best positioned in 2025,” the analyst said, noting that real estate returns remained positive but lagged liquid financial assets due to slower transaction activity.