Kashf Foundation (hereafter referred as “KF” or “the Foundation”) is the first Microfinance Institution of the country. It is licensed by the Securities and Exchange Commission of Pakistan (SECP) under the Non-Banking Finance Companies Rules, 2003. Its registered office is situated at 1-C, Shahrah Nazaria-e-Pakistan, Lahore.

Kashf was established in 1996 and began operations as a Grameen replicator. It was incorporated with the SECP in 2007 as a public company limited by guarantee and licensed as a non-profit organization under Section 42 of the Companies Ordinance, 1984 (now Companies Act, 2017).

Kashf Foundation’s principal activity is to provide micro-finance services to poor households in order to enhance their economic role. The Foundation extends micro and small loans to underprivileged communities with a maturity of less than or equal to one year. Most of the Foundation's portfolio is concentrated in urban areas of Punjab. The main product of the Foundation is the “Kashf Karobar Karza (KKK)” loan which is provided to boost entrepreneurship and small businesses in the country. Almost 100% of the Foundation’s clientele is female. As of Dec’25, the Foundation has 498 branches (FY25: 422; FY24: 382) in Pakistan.

Kashf Foundation is a public limited company, limited by guarantee without having a share capital. The Company is governed and supervised by its board of directors, having 10 directors who are non-executive / independent. Moreover, there are also 17 members of the company and in case of the company being wound up every member has committed a specified guarantee amount in accordance with the stipulation of the companies Act, 2017. This structure not only aligns with legal requirements but also reinforces the Foundation’s mission-driven approach. 

Since its inception in 2007, the Foundation has demonstrated growth by maintaining a stable position within the Microfinance Institutions (MFIs) sector. This stability has been achieved through prudent financial management, strategic planning, and a commitment to its core mission. Moreover, a comprehensive succession plan is in place to ensure the continuity of leadership and operational effectiveness.

The members of the Foundation are seasoned professionals with a wealth of experience and a diverse skill set, enabling them to effectively guide the Foundation in achieving its objectives.

The Foundation’s strong equity base, healthy cash flows, and sound financial management practices underscore its continued financial stability. These strengths are further supported by diversified revenue streams and a disciplined strategic approach to financial sustainability. While the Foundation maintains this robust position, the likelihood of receiving financial support from its members remains limited due to its registration as a not‑for‑profit entity under Section 42 of the Companies Ordinance, 1984 (now Companies Act, 2017), which restricts the solicitation of direct financial contributions from members.

Kashf boasts a distinguished board of directors (BODs) comprised of ten dedicated members, led by the esteemed Dr. Hafiz Ahmed Pasha as the chairman.

The board members bring extensive experience in financial and banking services. Dr. Hafiz Ahmed Pasha, the Chairman, is a retired civil servant and leading economist with a PhD from Stanford University. He has held several prominent public appointments, including Advisor to the Prime Minister, Deputy Chairman of the Planning Commission, and Federal Minister in various capacities. Internationally, he served as Assistant Administrator and Regional Director of the UNDP, among other notable roles. Dr. Pasha is the first Pakistani to hold the distinction of United Nations Assistant Secretary General. The CEO, Ms. Roshaneh Zafar, has over two decades of experience and has worked with the World Bank. The CFO, Mr. Shahzad Iqbal, is a Fellow Chartered Accountant (FCA) with significant experience in the telecom sector. This strong leadership team is further supported by a diverse and seasoned group of professionals, ensuring effective governance and operational excellence.

The board is supported by seven specialized sub-committees: (i) Audit Committee, (ii) Credit, Program & Finance Committee, (iii) Human Resource Committee, (iv) Investment Committee, (v) Nomination Committee, (vi) Risk Management Committee, and (vii) IT Committee. These sub-committees play a crucial role in providing detailed oversight and expert guidance on specific areas. The attendance during the meetings has been satisfactory, reflecting the commitment of the members. Moreover, the minutes of the meetings are meticulously documented, ensuring transparency and accountability in all board activities.

A.F Ferguson & Co., Chartered Accountants, serve as the External Auditors of the Foundation. For FY25, they issued an unqualified opinion on the financial statements, affirming the accuracy and reliability of the Foundation's financial reporting. An Internal Audit Department is in place, which conducts a risk-based audit of the branches every year on sample basis and reports directly to the Audit Committee, further strengthens the Foundation’s commitment to transparency and accountability. Additionally, a dedicated Compliance Department conducts regular inspections of all relevant departments, ensuring adherence to regulatory requirements and internal policies.

Kashf is a not-for-profit organization and a public company limited by guarantee, without share capital. All directors are non-executive and/or independent directors. The directors, responsible for overseeing and managing the affairs of the Company, are selected from among members of the Company. All 17 members of the Company have undertaken to contribute to the assets of the Company in the event of winding up, and each member is liable for a specified amount as per the statutory requirements of the SECP.

The management team of Kashf Foundation is led by its founder and CEO, Ms. Roshaneh Zafar, who sets the organization’s overall strategic vision and has guided it since its inception through her extensive experience in development economics and social entrepreneurship. She is supported by a strong senior Management Committee, including Mr. Mumtaz Iqbal (COO), Ms. Shahla Sattar (CRO), Mr. Faisal Malik (CTO), Mr. Shahzad Iqbal (CFO), Mr. Mueen Afzal (CHR) and Ms. Saira Soofi (CLO) each overseeing critical operational, risk, technology, financial, Human Resource and Legal functions that ensure efficient service delivery and institutional sustainability. Together, this team manages the foundation’s microfinance operations, ensures compliance with regulatory and financial standards, drives technology enabled transformation, and strengthens risk management frameworks. Their coordinated efforts enable Kashf Foundation to expand its outreach, empower women entrepreneurs, and maintain its reputation as a leading microfinance institution in Pakistan.

The Foundation benefits from a systematic and well-structured decision-making process. Seven-member management committees are in place, each tasked with overseeing critical operational areas. Each department head is responsible for ensuring the smooth functioning of their respective departments and reports directly to the Chief Executive Officer on pertinent matters.

The integration of departments within the Foundation significantly enhances management decision-making. The CIB report system is seamlessly linked to Tasdeeq and Data Check Limited, providing comprehensive and real-time data for informed decision-making.

The Foundation has implemented a comprehensive risk management policy to effectively manage both operational and credit risks. The loan approval process is decentralized at the branch level, allowing for efficient and localized decision-making. Loan recovery is conducted through business development officers (BDOs) of respective branch, ensuring a streamlined and accessible approach to repayments. This decentralized structure enhances operational resilience and mitigates potential risks associated with centralized processes.

Kashf Foundation has been consistently investing in its technological infrastructure to enhance automation and efficiency across its departments, a critical need in the evolving microfinance industry. Looking ahead, the Foundation is committed to leveraging technological development to promote literacy among women. This strategic focus aims to empower women through education, equipping them with the necessary skills to thrive in a digital world.

In Pakistan, there are currently 23 dedicated microfinance institutions (MFIs) that provide specialized microfinance services. During CY24, the MFIs and RSPs segment accounted for ~23.0% of the sector’s GLP. The infection ratio of this segment remained very low compared to MFBs clocking in at ~1.1% in FY25, an improvement from FY24 (~1.3%). MFIs maintain lower infection ratios than MFBs due to their smaller, community-driven lending models, cautious credit expansion and deeper borrowing engagement. These factors collectively foster stronger repayment discipline and reduce default risk. Generally being smaller in scale as compared to MFBs helps them manage their asset portfolio through borrowed funds. Effective liquidity management is crucial for these MFIs, given their inherently high operating costs. On average, ~60% of the borrowings of MFIs are from commercial banks, while the next highest share pertains to foreign lenders (~12%), followed by PMIC and SBP. MFIs posted strong profitability of ~PKR 5.7bln in FY25 on the back of higher net interest income and sizeable growth in lending portfolio. The average loan size of MFIs increased to ~PKR 60,684, leading to increase in portfolio and relatively lower costs.

The Foundation is among the top three Microfinance Institutions (MFIs) in Pakistan. When excluding major telecom operators such as Mobilink and Telenor, the Foundation stands out as the leading player in the microfinance sector. As one of the oldest entities in the MFI industry, the Foundation has leveraged its extensive experience to cultivate strong and enduring relationships with borrowers.

The Foundation achieved an interest income of ~PKR 16,918mln in FY25, ~18.23% growth from ~PKR 14,309mln in FY24. This growth was primarily driven by a substantial increase in return on loans. In Dec’25 (6MFY26), the Foundation reported a topline of ~PKR 9,647mln, mainly attributed to the markup earned from advances, which amounted to approximately PKR 8,704mln.

Kashf’s earning assets constitute ~93.3% of the total assets at the end of Dec’25 (6MFY26), demonstrating a strong asset base dedicated to generating income. In Dec’25 (6MFY26), the Company recorded a surplus after tax of ~PKR 1,543mln (FY25: ~PKR 2,762mln), ensuring a satisfactory turnaround from the loss of ~PKR 672mln in FY24, which was primarily due to the settlement of the Foundation’s tax liability.

Kashf’s key strategy focuses on expanding its market presence and enhancing financial inclusion across the nation. By diversifying its range of products and services, the Foundation aims to meet the evolving needs of its clients and communities. Additionally, establishing a positive reputation through consistent performance, ethical practices, and impactful initiatives is central to Kashf's mission. This strategic approach ensures long-term sustainability and reinforces the Foundation's commitment to fostering social empowerment.

Kashf stands as a prominent player among Microfinance Institutions (MFIs), with a decentralized loan approval and disbursement system implemented at the branch level. To mitigate asset-related risk, the organization has established a robust control and recovery mechanism. As of end-December 2025, Kashf maintained a Gross Loan Portfolio (GLP) of PKR 42,526 million, up from PKR 37,714 million in FY25 and PKR 29,475 million in FY24. The Non-Performing Loans (NPLs) slightly increased to PKR 181 million during the first half of FY26 (FY25: PKR 135 million). The PAR-30 ratio stood at 0.4% as of end-December 2025, unchanged from end-June 2025. The loan book is well-diversified across various sectors, including Services (38.26%), Agriculture and Livestock (27.07%), Trading (16.34%), Domestic (10.79%), and the remaining in manufacturing, Garments & Handicrafts, schools, and others (7.55%). This diversification strategy further strengthens Kashf’s resilience against sector-specific risks.

Kashf Foundation demonstrated a structural shift in its earning asset mix, with the investment portfolio expanding to 16.6% of total earning assets by Dec’25, up from 13.8% in FY25 (FY24: 14.1%). The uptick indicates a gradual pivot toward balance-sheet liquidity buffers and income diversification, potentially moderating credit risk intensity inherent in the core microfinance book. However, the higher allocation also implies relatively lower portfolio granularity and may dilute spreads if reinvestment yields compress relative to lending margins.

Kashf Foundation currently generates ~60% of its funds from foreign borrowers, with the remaining funds (~40%) sourced from local commercial banks and Development Finance Institutions (DFIs). Management intends to broadly maintain this mix going forward, targeting a funding structure of approximately 60:40 between foreign and local sources. As of 1HFY26, the total funding of the Foundation stood at ~PKR 49,902mln, up from ~PKR 40,988mln in FY25 (FY24: ~PKR 35,288mln). Currently, the average cost of funding for the Foundation is around 13.54%. 

Kashf Foundation reported a noticeable strengthening in its on-balance-sheet liquidity position. Liquid assets increased to ~PKR 10,196 mln in 1HFY26 from ~PKR 8,587 mln in FY25, reflecting a build-up of readily deployable resources to meet near-term operational requirements and funding obligations. The sustainability of stronger coverage metrics will, however, remain contingent on continued collection efficiency, stable portfolio performance, and the Foundation’s capacity to replenish liquidity without materially compressing margins.

Unlike the State Bank of Pakistan (SBP), which mandates Microfinance Banks (MFBs) to maintain a Capital Adequacy Ratio (CAR) of 15%, the Securities and Exchange Commission of Pakistan (SECP) has no minimum requirement for Microfinance Institutions (MFIs). During the first half of FY26, the Foundation has demonstrated notable equity growth, with equity standing at ~PKR 13,120mln, up from ~PKR 11,748mln in FY25 (FY24: ~PKR 9,256mln). In 1HFY26, the Foundation’s equity to Gross Loan Portfolio (GLP) ratio stood at ~30.85%, compared to 31.15% in FY25 (FY24: ~31.40%).