- PEAK RS4.43 Placement Fund Assets December 2024, dropped to Rs3.93st June 2025.
- SECP links decrease to government tax policy, the change of temporary funds focused on banks.
- Retail investors have 39.2% AUMS 2025, corporate shares slips at 61%.
Islamabad: The size of the Pakistan common funds sector has increased almost seven times in the past six years, with assets under management from RS578 billion in 2019 to RS3.93 Billion by June 2025, fueled by robust growth in conventional and sharia -based funds, the latest figures for the Securities and Exchange of Pakistan (SECP).
The news indicated that conventional funds increased by 5.2 times during the period to Rs 2.206 Billions, while the funds in accordance with Sharia law increased by 6.7 times to Rs1.726 Billions, narrowing the gap in market share. Products compliant with Sharia law now represent 44% of the industry, compared to 39% in 2019, reflecting the increase in investors’ preference for Islamic finance.
After jumping from 2.70 rumbox billions in June 2024 to 4.43 Billions of rupees in December 2024, the deposits of common investment funds dropped by more than half a bill of rupees to 3.93 rumbers of rupees in June 2025.
A high official of the SECP allocated the sharp decline to the announcement by the federal government of an additional tax up to 16% on banks with an advanced ratio at deposit below 50% on December 31, 2024. “To meet the need for advanced ratio to deposit, they encouraged large customers to transfer funds to mutilated funds, to raise deposit funds. This money returned to the banking system after December 31, “said the manager.
The drop was around 10%, from December to June 2025, although a substantial increase from one year to the next, he added. The manager said that SECP had organized discussion group sessions with industry stakeholders to map the next phase of reforms.
The main priorities include the digital transformation of the common funds, the introduction of exchanged funds (ETF) and the launch of infrastructures and funds based on ESGs to exploit the request for sustainable investment.
The regulator also plans to reorganize common fund distribution models, promote systematic investment plans (SIP) for retail savers and improve financial inclusion, with a particular accent on investors. In addition, reforms are on the table for prudential limits, governance and transparency standards to protect the interests of investors.
Market analysts claim that the growth of the sector has been fueled by a mixture of low declarations of banking deposits, increasing financial literacy and regulatory support. However, they warn that the maintenance of the momentum will require innovation, wider accessibility and robust surveillance. The penetration of common funds still low compared to regional peers, the SECP reform agenda signals a thrust to deepen the capital markets and channel more interior savings in productive investments – a change that could support the wider economic development objectives of Pakistan.
Retail investors now hold 39.2% of the total assets under management (AUMS) of Pakistan in 2025, against 38% in 2019, while the share of business investors is reduced to 61% against 62% in 2019.
SECP data also show that 56% of total alms are conventional, while 44% comply with sharia. There are now 768,769 individual investors and 6,361 business investors on the market, showing a widening of detail participation in the common funds and capital markets.
