Islamic mutual funds in Pakistan cross Rs. 2 trillion milestone

Islamic mutual funds in Pakistan have crossed Rs. 2 trillion in assets for the first time, marking a major milestone for the country’s Sharia-compliant investment industry.

According to data cited from the Mutual Funds Association of Pakistan, total assets managed by Islamic fund managers reached Rs. 2.1 trillion by the end of February 2026, up from Rs. 1.7 trillion a year earlier. The expansion points to sustained investor demand from individuals, businesses, and associations looking for faith-based investment products.

The market includes open-ended funds, pension products, and exchange-traded funds spread across money market, equity, and income strategies. Analysts say the growth reflects rising investor preference for regulated collective investment vehicles that offer relatively stable and diversified exposure.

The broader mutual fund sector also continued to expand, with industry assets reaching Rs. 4.35 trillion. Large bank-backed asset managers remained dominant, with Al Meezan Investment, NBP Fund Management, MCB Investment Management, UBL Fund Managers, HBL Asset Management, and Alfalah Asset Management among the biggest players.