KARACHI: Gold and equities emerged as the best-performing asset classes in Pakistan during 2025, delivering significantly higher returns than real estate, fixed-income instruments, and foreign currency investments, according to a report released by Topline Securities.

Gold Leads With Record-Breaking Returns

Gold ranked as the top-performing asset of the year, generating an exceptional 73 percent return between January 1 and December 24, 2025.

Domestic gold prices surged from Rs233,711 to Rs405,402 per 10 grams, reflecting strong local demand and global price momentum. In the international market, gold prices climbed sharply from $2,612 per ounce at the end of 2024 to $4,503 per ounce by December 26, 2025.

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Analysts attributed the rally to global economic uncertainty, geopolitical risks, and sustained central bank buying, which reinforced gold’s status as a preferred hedge.

Stock Market Posts Strong Gains

The KSE-100 Index ranked as the second-best performing asset class, delivering a 48 percent total return, including dividends.

Topline Securities noted that robust market participation, improving investor confidence, and dividend payouts contributed to the strong performance. With only four trading sessions remaining at the time of reporting, equities remained a highly attractive option for growth-oriented investors.

Real Estate Shows Moderate Growth

Real estate continued to attract investor interest, particularly in prime urban locations.

According to data from Zameen.com, commercial plot prices in DHA Karachi and DHA Lahore rose by an average of 18 percent, while residential plots recorded gains of around 15 percent during 2025.

House prices increased at a slower pace, posting an average rise of 8 percent, reflecting a more cautious buyer sentiment amid high financing costs.

Performance of Government-Backed Investments

Among government-supported investment products, the Naya Pakistan PKR Certificate offered through the Roshan Digital Account delivered a 22 percent return for investments made at the start of the year.

The Naya Pakistan US Dollar Certificate generated a 10 percent return over the same period.

Government securities also performed steadily, with Pakistan Investment Bonds (PIBs) returning 14 percent, while 3-month and 1-year Treasury Bills each delivered 12 percent returns. The Special Saving Certificate (SSC) matched these gains with a 12 percent first-year return.

Dollar, Mutual Funds, and Crypto Lag Behind

Returns on the US dollar remained limited, with gains of around 3 to 4 percent, as the rupee remained largely stable. The interbank exchange rate moved marginally from Rs278 to Rs280, while the open market rate edged from Rs280 to Rs281.

Local mutual funds delivered an average return of 11 percent, while bank savings deposits yielded approximately 9 percent.

Cryptocurrency investments, which are not officially permitted in Pakistan, posted a negative return of 4 percent, reflecting global volatility and regulatory uncertainty.

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Investment Trends in 2025

The report concluded that despite economic challenges, gold and equities dominated investor returns in 2025, while real estate and government securities continued to provide stability and moderate gains.

Fixed-income instruments remained appealing to risk-averse investors, while high-return seekers benefited most from exposure to precious metals and equities.