Pakistan’s stock market is likely to remain the strongest-performing investment option in 2026, according to a recent report released by Arif Habib Limited.
The report suggests that equities are expected to deliver better returns than other popular asset classes, including gold, the US dollar, and fixed-income investments.
The positive outlook is based on signs of improving economic conditions in the country. Analysts point to easing inflation, a relatively stable exchange rate, and improved liquidity in the financial system as major factors supporting market growth.
These conditions are expected to create a healthier environment for businesses and investors alike.
The report also highlights that stock market valuations remain attractive compared to historical levels, making equities appealing for both local and foreign investors.
Ongoing economic and structural reforms are further strengthening investor confidence, while increased trading activity reflects growing interest in the equity market.
Experts believe that as economic stability continues, companies will benefit from better earnings prospects, which could support further gains in stock prices. Lower inflation and stable currency conditions are also expected to reduce uncertainty, encouraging long-term investment in equities.
In comparison, returns from traditional investment options such as fixed-income instruments may remain limited, while gold and the dollar are not expected to offer the same growth potential as stocks in the coming year.
