Pak Qatar Asset Management Company Limited

RATING REPORT | Mar-26

Logo
Rating History
Dissemination Date Rating Outlook Action Rating Watch
19-Mar-26 AM2+ Stable Upgrade -
10-Oct-25 AM2 Positive Maintain -
11-Oct-24 AM2 Stable Maintain -
11-Oct-23 AM2 Stable Initial -
About the Entity

PQAMC, established in 2021, is licensed by the SECP to carry out asset management and investment advisory business. The major shareholder of the AMC is the holding company PQIL, which holds 66% of the stake, and the remaining shareholders include FWU AG (20%) and PQFTL (5%). Mr. Zahid Hussain and Mr. M. Kamran Saleem hold 2% and 7%, respectively.

Rating Rationale

Pak Qatar Asset Management Company Limited ("PQAMC" or the "AMC") is part of the Pak Qatar Group, the pioneer and largest Takaful Group in Pakistan. The Group’s strong sponsor profile and industry expertise continue to provide strategic support to the AMC. The assigned rating upgrade reflects the AMC’s improving market position, expanding retail outreach, and consistent performance across key fund categories. PQAMC operates with a distinctive distribution model compared to many industry peers, leveraging Pak-Qatar Family Takaful Limited (PQFTL) as an extension of its sales and distribution network. The AMC manages its portfolio through two key streams: (i) PQFTL’s policyholders’ funds, which constitute the predominant share, and (ii) investors’ funds opened directly through the AMC’s platform. The AMC’s distinctive model is reflected in its higher retail penetration, primarily driven by policyholders’ funds, which account for ~80% of total AUMs. Additionally, HNWIs contribute ~4% of AUMs, further reinforcing retail participation and supporting the assigned rating. PQAMC continues to expand its retail footprint through PQFTL’s nationwide branch network of over 100 outlets, supported by ongoing investments in digital platforms. During CY25, the industry’s AUMs recorded modest growth of around 4%, reaching PKR 4.5 trillion (Dec’24: PKR 4.3 trillion). The money market category held the largest share at 56%, followed by the income category at 24% and the equity category at 20%. Growth in the equity category was primarily driven by stock market gains during CY25, along with a slight increase in fresh inflows. Meanwhile, the money market category posted moderate growth of ~8%, whereas the income category experienced a decline of 23%. While PQAMC followed a similar trend, the growth in its money market funds was significantly higher compared to the industry. As of end-Dec’25, the AUMs increased significantly by ~21% to PKR ~70.5bln (Dec’24: PKR 58.5bln), while the SMA portfolio also rose to ~PKR 66.3bln (Jun’25: ~PKR 59bln). Consequently, the AMC’s market share improved slightly to ~1.6% (Dec’24: 1.3%). In the Islamic AUMs segment, PQAMC holds ~3.3% market share as of Dec’25, reflecting its gradually strengthening standing within the Shariah-compliant asset management industry. The growth was primarily driven by a significant increase in the Pak Qatar Cash Plan, Pak Qatar Daily Dividend Plan, and Pak Qatar Asset Allocation Plan. In terms of Voluntary Pension Schemes (VPS), PQAMC exclusively manages PQFTL’s VPS fund. PQAMC has expanded its presence in the pension fund management space by providing investment advisory services to PQFTL. As part of the group’s broader pension initiatives, PQFTL has successfully launched the GoKP Islamic Pension Fund in Dec'25, followed by the GoPB Islamic Pension Fund in Jan'26, further strengthening the group’s presence in government pension schemes. These developments are expected to support PQAMC’s portfolio diversification and enhance its revenue base. As of Dec’25, the PFM industry stands at ~PKR 133bln (Dec'24: PKR 93bln). The fund performance of PQAMC has generally remained above respective benchmarks, with sound performance in the income, money market, and asset allocation categories, demonstrating the AMC’s investment management capability in the Shariah-compliant segment. On the financial side, PQAMC has demonstrated a positive growth trajectory. During 6MFY26, the AMC’s topline increased to PKR 229mln (6MFY25: PKR 135mln), while net profit rose to PKR 99mln (6MFY25: PKR 63mln). The AMC’s equity also strengthened to PKR 630mln (FY25: ~PKR 591mln).

Key Rating Drivers

The rating is dependent upon the AMC's ability to sustain its relative standing and uphold strong investment processes. A sustained upward trend in fund performance, along with a consistent increase in market share, will continue to have visible affirmation in the rating.

REPORT CONTENTS
  1. Rating Analysis
  2. Financial Summary
  3. Rating Scale
  4. Regulatory Disclosure

Pak Qatar Asset Management Company Limited

rating analysis

Logo
Profile
Structure

Pak Qatar Asset Management Company Limited ("PQAMC" or the "AMC") was incorporated in Sep'2021 as a public unlisted company.


Background

Pak Qatar Asset Management Company Limited is part of the Pak-Qatar Group. It is licensed by the SECP to operate as both an Asset Management Company and Investment Advisor. The AMC is dedicated to offering Shariah-compliant investment solutions, with all its products certified by qualified Shariah scholars.


Market Share

The market share of the AMC stood at ~1.6% at the end of Dec'25 (Dec'24: 1.3%).


Diversification of Fund Mix

The AMC offers an adequate fund mix comprising four open-ended funds. Except for the Pak Qatar Islamic Stock Fund, the remaining three Pak Qatar Islamic Cash Fund, Pak Qatar Islamic Income Fund, and Pak Qatar Islamic Asset Allocation Fund have been launched under plan structures to cater to distinct segments of clientele.


Investor Concentration

As of end Dec'25, the average top ten investors' concentration stood at~94% while related party holdings were ~85% of the total AUMs of the AMC. A key element that mitigates concentration and related party exposure is the underlying maturity profile of the constituting participants, which granulates overall risk.


Ownership
Ownership Structure

The major shareholder of PQAMC is the holding company PQIL, which holds a 76% stake. The remaining shareholding is distributed among PQFTL (7%), Mr. Zahid Hussain (5%), and Mr. M. Kamran Saleem (10%). Additionally, Mr. Farhan Shaukat and Mr. Meraj Uddin Mazhar each hold a 1% stake in the Company.


Business Acumen

The sponsors of PQAMC are celebrated businessmen with many profitable ventures in their portfolio, whose success is a testimony to the excellent business acumen of the sponsors and their ability to form and execute business strategies


Financial Strength

The sponsors of PQAMC possess strong financial capacity and demonstrated commitment to support the AMC in times of distress, as reflected in their ownership.


Governance
Board Structure

The AMC’s Board currently consists of four members, including three non-executive directors and one independent director.


Members’ Profile

The Board members have strong educational backgrounds and carry extensive diversified experience. Mr. Said Gul, Non-Executive Director, is one of the key sponsors and a founding director of the Pak-Qatar Group. He is a prominent Pakistani businessman based in the State of Qatar and serves as the Executive Director of Eurotec Projects Development for Oil & Gas, a trading and consultancy enterprise. Mr. M. Kamran Saleem, Non-Executive Director, has been associated with the Group since its formation in 2006 and has played a key role in shaping and developing the Group. He is a senior finance professional with extensive experience in accountancy, auditing, and corporate and legal frameworks. Mrs. Sameera Said, Non-Executive Director, has a diversified experience of working with local and foreign organizations for 10 years. With a strong academic background, she has had the privilege to work for various organizations in senior managerial positions. Currently, she is serving on the Board of PQFTL & PQGTL, and Mr. Farrukh Viqaruddin Junaidy, Independent Director, joined the Board in Dec’25. He is a Fellow Member of the ICAP with over 40 years of experience in financial and business management.


Board Effectiveness

To ensure its effectiveness, the Board has formulated the Audit, HR, and Remuneration Committees and the Risk Management Committees.


Transparency

The External Auditors of the AMC are Yousaf Adil & Co, have a satisfactory QCR rating from the ICAP. The auditors are classified in the ‘A’ category of the State Bank of Pakistan panel of Auditors. They have given an unqualified opinion on the FY25 annual financial statements.


Management
Organizational Structure

The organizational structure aligns with the operational needs of the PQAMC. The AMC operates through twelve main departments, which fall under the purview of the CEO.


Management Team

The AMC’s management team is composed of qualified professionals with an average industry experience of ~19 years, bringing diverse expertise across key financial functions. The CEO, Mr. M. Farhan Shaukat is a qualified FCA with a PGD in Islamic Finance and over 26 years of professional experience. A fellow member of the ICAP, he has extensive expertise in accounting and finance, audit, systems development, business process re-engineering, portfolio management, product development, and sales. He has been with the Pak-Qatar Group since 2008, most recently serving as Head of Investment and Deputy CFO at POFTL, and previously worked with Master Group, Deloitte, and Hameed Chaudhri & Co. Chartered Accountants.


Technology Infrastructure

The PQAMC had outsourced its back-office functions such as unit management, settlement, and fund accounting to IT Minds Limited and has an in-house system as well


Control Environment

Internal Audit plan, approved by Audit Committee, encompasses the review of the internal control system, which includes policies/procedures, physical safeguards, and monitoring of compliance function pertaining to NBFC regulations. The compliance and risk functions are segregated and are overseen by dedicated resources.


Investment Risk Management
Credit Risk

Internal assessment modules are used with a combination of qualitative and quantitative analysis. Excel based credit risk scorecards are in place which provide statistical estimates for counter party credit risk. The fund managers ensure the credit portfolio of the fund exposed to credit risk is broadly diversified


Liquidity Profile

The risk management department vigilantly monitors the liquidity profile of funds under management. Sufficient liquidity is maintained by investing a significant portion of funds’ assets in liquid investment avenues.


Market Risk

For managing market risk, various techniques such as VaR analysis, beta analysis and stress testing are being used. The exposure limits are clearly communicated to portfolio managers along with a periodic review of the appropriateness of limit structure.


Portfolio Management
IC Composition

The investment committee comprises the CEO, CIO, Fund Manager, and the Head of Research. Mr. Meraj Uddin Mazhar is the CIO. He has extensive experience of 14 years overall and with the PQAMC experience of 4 years managing Equity, Fixed Income, Discretionary, and Non-Discretionary portfolios.


Effectiveness

The IC comprises of qualified and experienced professionals to review the investment strategy of each fund and its performance to incorporate impact of market circumstances on funds’ performance. The IC for equity and fixed income is performed independently on monthly basis.


Investment Research and Analysis

The Head of Research, Mr. Farhan Javaid, ACMA, brings 16 years of professional experience. He plays a pivotal role in strengthening research capabilities and supporting informed investment decisions, with research structured across three tiers: (i) Economic, (ii) Sector, and (iii) Entity. The department applies fundamental and financial analysis, along with broker research, to identify attractive investment opportunities.


Customer Relationship
Investor Services

The Investor Services Department provides investor education, personalized solutions, and client reporting. Retail customer outreach is expected to be enhanced by allowing investments in PQAMC’s mutual funds through the CDC. The AMC also developed its Mobile App "Pak-Qatar AMC" to facilitate the retail customers.


Investor Reporting

In addition to publishing fund manager reports monthly, the PQAMC also disseminates unit holder statements every month through email, which include net asset value and month-end closing values.


Distribution and Sales Network

The PQAMC, with its dedicated sales team, also utilizes the branch network of the PQFTL, which has more than 100 branches in major cities across Pakistan. The AMC has segregated the Marketing & Distribution function into two segments, where the retail segment will be managed through the distribution channel of PQFTL, and the corporate segment will be directly looked after by the PQAMC through the corporate sales team.


Performance
Asset Under Management

As of Dec'25, the AUMs of PQAMC increased by 21% to ~PKR 70.5bln (Dec’24: ~PKR 58.5bln), while the Separately Managed Account (SMA) portfolio inclined by 12.4% to ~PKR 66.3bln (Jun’25: ~PKR 59bln). The fund performance of PQAMC has generally remained above respective benchmarks, with sound performance in the income, money market, and asset allocation categories, demonstrating the AMC’s investment management capability in the Shariah-compliant segment. In addition to its existing offerings, PQAMC has expanded its presence in the pension fund management space by providing investment advisory services to PQFTL. As part of the group’s broader pension initiatives, PQFTL has successfully launched the GoKP Islamic Pension Fund in Dec'25, followed by the GoPB Islamic Pension Fund in Jan'26, further strengthening the group’s presence in government pension schemes. These developments are expected to support PQAMC’s portfolio diversification and enhance its revenue base.


Asset Manager

During 6MFY26, the AMC earned a net profit after tax of ~PKR 99mln (6MFY25: ~PKR 63mln). The topline inclined to ~PKR 229mln (6MFY25: ~PKR 135mln), while the operating profit was reported at ~PKR 139.5mln (6MFY25: ~PKR 92.1mln). The equity base of the AMC stood at ~PKR 630mln (FY25: ~PKR 591mln). 
 
 

Mar-26

www.pacra.com

Pak Qatar Asset Management Company Limited

funds performance

(Pak Qatar Asset Management Company Limited)

Logo
Sr. No. Fund Name Category Launch Date Weight (%) AUMs (PKR' mln) Return | Rolling 12 Months (Dec'25-Dec'24) Stability Rating/Performance Ranking
Dec-25 Sep-25 Jun-25 Mar-25 Return Benchmark Fund vs. Benchmark
Shariah Complaint Funds
1 Pak Qatar Income Plan Shariah Compliant Income 03-Oct-22 12.6% 8,852 9,629 12,479 12,006 11.3% 10.1% 1.2% AA-
2 Pak Qatar Cash Plan Shariah Compliant Money Market 03-Oct-22 14.4% 10,179 8,969 10,141 5,684 10.7% 10.0% 0.7% AA
3 Pak Qatar Daily Dividend Plan Shariah Compliant Money Market 03-Oct-22 3.1% 2,183 1,332 1,567 1,740 10.2% 10.0% 0.2% AA
4 Pak Qatar Islamic Stock Fund Shariah Compliant Equity 22-Sep-22 1.9% 1,319 1,237 998 1,018 25.6% 39.1% -13.5% -
5 Pak Qatar Khalis Bachat Plan Shariah Compliant Income 03-Oct-22 0.2% 159 182 360 353 9.1% 10.1% -0.9% A
6 Pak Qatar Monthly Income Plan Shariah Compliant Income 03-Oct-22 1.1% 776 767 948 1,020 10.7% 10.1% 0.6% A+
7 Pak Qatar Asan Munafa Plan Shariah Compliant Money Market 03-Oct-22 0.9% 638 261 1,076 227 9.8% 10.0% -0.2% AA
8 Pak Qatar Asset Allocation Plan I Shariah Compliant Asset Allocation 18-Aug-23 16.9% 11,927 11,040 10,202 10,625 12.5% 9.3% 3.2% -
9 Pak Qatar Asset Allocation Plan II Shariah Compliant Asset Allocation 18-Aug-23 36.1% 25,473 22,770 17,790 18,006 11.4% 9.3% 2.1% -
10 Pak Qatar Asset Allocation Plan III (Launch Date: Sep'23) Shariah Compliant Asset Allocation 24-Sep-24 12.8% 9,013 9,491 8,200 9,683 22.5% 36.1% -13.6% -
Grand Total 100% 70,519 65,677 63,759 60,361

Mar-26

www.pacra.com

Pak Qatar Asset Management Company Limited

rating scale

Logo

Mar-26

www.pacra.com

Pak Qatar Asset Management Company Limited

regulatory disclosure

Logo
  1. Rating Team Statements
    1. Rating is just an opinion about the creditworthiness of the entity and does not constitute a recommendation to buy, hold, or sell any security of the entity rated or to buy, hold, or sell the security rated, as the case may be. (Chapter III; 14-3-(x))
    2. Conflict of Interest
      1. The Rating Team or any of their family members have no interest in this rating (Chapter III; 12-2-(j))
      2. PACRA, the analysts involved in the rating process, and members of its rating committee and their family members do not have any conflict of interest relating to the rating done by them (Chapter III; 12-2-(e) & (k))
      3. The analyst is not a substantial shareholder of the customer being rated by PACRA [Annexure F; d-(ii)]
      4. Explanation: for the purpose of the above clause, the term "family members" shall include only those family members who are dependent on the analyst and members of the rating committee.
  2. Restrictions
    1. No director, officer, or employee of PACRA communicates the information acquired by him for use for rating purposes to any other person, except where required under law to do so. (Chapter III; 10-(5))
    2. PACRA does not disclose or discuss with outside parties or make improper use of the non-public information which has come to its knowledge during a business relationship with the customer. (Chapter III; 10-7-(d))
    3. PACRA does not make proposals or recommendations regarding the activities of rated entities that could impact a credit rating of the entity subject to rating. (Chapter III; 10-7-(k))
  3. Conduct of Business
    1. PACRA fulfills its obligations in a fair, efficient, transparent, and ethical manner and renders high standards of services in performing its functions and obligations. (Chapter III; 11-A-(a))
    2. PACRA uses due care in the preparation of this Rating Report. Our information has been obtained from sources we consider to be reliable, but its accuracy or completeness is not guaranteed. PACRA does not, in every instance, independently verify or validate information received in the rating process or in preparing this Rating Report. (Clause 11-(A)(p))
    3. PACRA prohibits its employees and analysts from soliciting money, gifts, or favors from anyone with whom PACRA conducts business. (Chapter III; 11-A-(q))
    4. PACRA ensures before the commencement of the rating process that an analyst or employee has not had a recent employment or other significant business or personal relationship with the rated entity that may cause or may be perceived as causing a conflict of interest. (Chapter III; 11-A-(r))
    5. PACRA maintains the principle of integrity in seeking rating business. (Chapter III; 11-A-(u))
    6. PACRA promptly investigates in the event of misconduct or a breach of the policies, procedures, and controls, and takes appropriate steps to rectify any weaknesses to prevent any recurrence, along with suitable punitive action against the responsible employee(s). (Chapter III; 11-B-(m))
  4. Independence & Conflict of Interest
    1. PACRA receives compensation from the entity being rated or any third party for the rating services it offers. The receipt of this compensation has no influence on PACRA’s opinions or other analytical processes. In all instances, PACRA is committed to preserving the objectivity, integrity, and independence of its ratings. Our relationship is governed by two distinct mandates: i) rating mandate - signed with the entity being rated or issuer of the debt instrument, and ii) fee mandate - signed with the payer, which can be different from the entity.
    2. PACRA does not provide consultancy/advisory services or other services to any of its customers or their associated companies and associated undertakings that are being rated or have been rated by it during the preceding three years, unless it has an adequate mechanism in place ensuring that the provision of such services does not lead to a conflict of interest situation with its rating activities. (Chapter III; 12-2-(d))
    3. PACRA discloses that no shareholder directly or indirectly holding 10% or more of the share capital of PACRA also holds directly or indirectly 10% or more of the share capital of the entity which is subject to rating or the entity which issued the instrument subject to rating by PACRA. (Chapter III; 12-2-(f))
    4. PACRA ensures that the rating assigned to an entity or instrument is not affected by the existence of a business relationship between PACRA and the entity or any other party, or the non-existence of such a relationship. (Chapter III; 12-2-(i))
    5. PACRA ensures that the analysts or any of their family members shall not buy, sell, or engage in any transaction in any security which falls in the analyst’s area of primary analytical responsibility. This clause, however, does not apply to investments in securities through collective investment schemes. (Chapter III; 12-2-(l))
    6. PACRA has established policies and procedures governing investments and trading in securities by its employees and for monitoring the same to prevent insider trading, market manipulation, or any other market abuse. (Chapter III; 11-B-(g))
  5. Monitoring and Review
    1. PACRA monitors all the outstanding ratings continuously, and any potential change therein due to any event associated with the issuer, the security arrangement, the industry, etc., is disseminated to the market immediately and in an effective manner after appropriate consultation with the entity/issuer. (Chapter III; 17-(a))
    2. PACRA reviews all the outstanding ratings periodically on an annual basis. Provided that public dissemination of annual review and in an instance of change in rating will be made. (Chapter III; 17-(b))
    3. PACRA initiates an immediate review of the outstanding rating upon becoming aware of any information that may reasonably be expected to result in downgrading of the rating. (Chapter III; 17-(c))
    4. PACRA engages with the issuer and the debt securities trustee to remain updated on all information pertaining to the rating of the entity/instrument. (Chapter III; 17-(d))
  6. Probability of Default
    1. PACRA’s Rating Scale reflects the expectation of credit risk. The highest rating has the lowest relative likelihood of default (i.e., probability). PACRA’s transition studies capture the historical performance behavior of a specific rating notch. Transition behavior of the assigned rating can be obtained from PACRA’s Transition Study available at our website. (www.pacra.com) However, the actual transition of rating may not follow the pattern observed in the past. (Chapter III; 14-3(f)(vii))
  7. Proprietary Information
    1. All information contained herein is considered proprietary by PACRA. Hence, none of the information in this document can be copied or otherwise reproduced, stored, or disseminated in whole or in part in any form or by any means whatsoever by any person without PACRA’s prior written consent.

Mar-26

www.pacra.com