JWS Pakistan (herein referred to as “JWSP” or ‘the Company') was incorporated on 28 December 2015 as a company limited by guarantee under Section 42 of the Companies Ordinance, 1984 (now the Companies Act, 2017).The Company is licensed to provide Investment Finance Services under the Non-Banking Finance Companies (NBFC) Rules, 2003.

JWS Pakistan (JWSP) was established as a separate entity in 2015, spun off from the Jinnah Welfare Society, an NGO founded in 1992. The transition was strategically designed to centralize and scale microfinance operations. The Company was co-founded by Mr. Qazi Shoaib Alam Farooqi (CEO) and Mr. Muhammad Jamil Anjum (CFO), who bring decades of experience in community development and social mobilization. JWSP is registered as a Non-Banking Microfinance Company (NBMFC) under Section 42 of the Companies Act, 2017, functioning as a "Company Limited by Guarantee" with a mission focused on financial inclusion and poverty alleviation.

JWSP maintains its operational footprint in the Upper and Central Punjab regions, currently managing a network of over 141 branches and a registered office in Gujranwala. As of early 2026, the institution has successfully expanded its outreach to approximately 200,170 active borrowers, demonstrating robust growth and deepening financial inclusion within 27 districts of Punjab. The company’s diverse product portfolio is specifically tailored to the rural and semi-urban economy, featuring specialized credit solutions such as Zari Qarza (Agriculture), Maweshi Qarza (Livestock & Dairy), and Karobar Qarza (Enterprise), alongside expansionary and consumer-focused products including Madad Gaar Qarza (Enterprise Expansion), Fori Qarza (Domestic), Auto Qarza, Housing Loans, and SME Loans. Furthermore, the institution has embraced diversified financing needs by offering Murabaha (Islamic Loans) and Solar Loans, reflecting its adaptability to market trends. While the portfolio is predominantly focused on individual lending to ensure high recovery rates and client proximity, the solidarity group model continues to provide a vital safety net, constituting approximately 9% of the total lending portfolio.

The control vests with members rather than shareholders. Members do not hold any shareholding but they have provided a guarantee of a specified nominal amount as required under the Companies Act 2017 for companies limited by guarantee.

The Company demonstrates high organizational stability, anchored by a formal management succession plan and the long-term continuity of its founding leadership. The future outlook remains stable, supported by a professional management tier and the successful transition from an NGO to a regulated NBMFC. In 2026, this stability is further reinforced by the institution's ability to maintain high recovery rates (~99%) and a growing footprint despite the volatile macroeconomic environment in Pakistan.

The members and Board of Directors possess a diverse and specialized set of skills, ranging from financial services to social mobilization. This collective expertise provides robust oversight of JWSP’s strategic direction, particularly in navigating the shift toward digitalization and Islamic microfinance (Murabaha). The leadership’s deep roots in the Gujranwala and Punjab regions allow for a nuanced understanding of rural market dynamics, which is reflected in the successful scaling of the borrower base to over 200,000 active clients.

As an NBMFC limited by guarantee, JWSP’s financial structure is distinct, as it operates without traditional "sponsor backing" in the form of equity injections since profits are non-distributable and reinvested into the institution's social mission. To maintain financial resilience and fuel its growth, evidenced by a Gross Loan Portfolio (GLP) reaching approximately PKR 8,121 million by early 2026, the Company relies on a diversified funding base consisting of debt capital from commercial banks and apex institutions like the Pakistan Microfinance Investment Company (PMIC). The current 2026 market landscape has provided significant tailwinds; the easing of the policy rate to ~10.5% has begun to rationalize funding costs, which is expected to expand net markup margins and improve overall profitability. Furthermore, JWSP is well-positioned to leverage emerging "Microfinance Plus" opportunities, such as the World Bank’s $102 million RAM project, which offers specialized liquidity facilities for climate-resilient agriculture and recovery loans, effectively bolstering the institution's capital buffers and liquidity profile in the absence of traditional equity.

The Board of Directors (BoD) consists of eight members excluding CEO, ensuring a balanced governance framework with the inclusion of three independent directors. In accordance with the institution’s legal structure as a company limited by guarantee, directors are elected from the general body of members, maintaining a strong alignment with the organization’s social mission.

The Board comprises seasoned professionals with a diversified skillset and an average experience of ~28 years across finance, education, and social development sectors. The Chairperson, Ms. Sabiha Shaheen, is a non-executive director with extensive experience in women’s empowerment, youth development, and institutional strengthening. The CEO, Mr. Qazi Shoaib Alam Farooqi, is a founding member and an experienced microfinance professional with over three decades of experience, playing a pivotal role in the institution’s strategic development and resilience. The Board also includes Mr. Naveed Iqbal, an independent director with a PhD in Accounting and extensive experience in the education sector, and Mr. Muhammad Shahid, a non-executive director with significant exposure to the private education sector. Collectively, the Board’s diverse background supports informed decision-making and strengthens governance oversight.

The presence of experienced directors with diversified backgrounds brings significant competency to the board’s strategic direction, augmenting the overall governance of JWSP. To ensure rigorous oversight and operational transparency, the Board has established six specialized sub-committees: (i) Audit Committee, (ii) Procurement Committee, (iii) HR Committee, (iv) Asset Disposal Committee, (v) Grievance Committee, and (vi) Risk Management Committee. These committees conduct quarterly meetings to monitor performance, compliance, and risk mitigation strategies, ensuring that the institution's internal control environment remains robust.

Ilyas Saeed & Co., Chartered Accountants, a QCR-rated firm (Category ‘A’ on the SBP panel), serves as the external auditor of the Company and has expressed an unqualified opinion on the financial statements for the year ended June 2025, reflecting adherence to applicable accounting standards. The Company also maintains an internal audit function, which reports to the Audit Committee on a periodic basis, supporting effective oversight and strengthening the overall control environment.

The Company maintains a simple and effective organizational structure designed to support its regional penetration. Six core functional departments are centralized at the Head Office in Gujranwala, providing strategic oversight. The operational hierarchy follows a structured reporting line where branches report to Area and Regional offices, which ultimately consolidate under the Head Office, ensuring a smooth flow of information and standardized service delivery across its 141+ branches.

The management team is led by Mr. Qazi Shoaib Alam Farooqi (CEO & Founding Member), a pioneer in the microfinance sector with 33 years of experience who, after earning a postgraduate degree from the University of Punjab, laid the foundation of the original NGO to serve underprivileged rural communities in Punjab. Supporting the CEO is a seasoned leadership team with diverse expertise, including Mr. Muhammad Jamil Anjum (CFO), a founding member with 33 years of experience in financial management and operations; Mr. Muhammad Saqib Abbas, an FCA-qualified professional with 21 years of experience, heads the Risk Management Committee, supporting oversight of credit risk and financial reporting. Ms. Roheena Iqbal, an experienced sociologist and public sector professional, heads the HR Committee, contributing insights into social and human capital aspects. Both actively lead their respective committees, strengthening governance and strategic oversight. Together, this stable leadership group ensures a systematic decision-making process and maintains a robust governance framework across the institution’s expanding operations.

Management effectiveness is driven by a systematic decision-making process where department heads ensure sound performance through regular consultations with the CEO. This collaborative approach ensures that material matters are addressed promptly. The high stability of the senior team, with several members serving the institution for over two decades, reinforces a strong corporate culture and institutional memory.

JWSP utilizes an in-house developed MIS called MCOS, which provides a tailored solution for microfinance operations. The system is integrated into three primary modules: (i) Financial Management System, (ii) Credit Management System & Risk Management, and (iii) Human Resource Management. MCOS features built-in processing and approval capabilities, allowing for efficient loan cycle management and data integrity.

The Company maintains a robust governance framework with standardized operating procedures and multi-layered internal controls, ensuring operational transparency. While these systems support business continuity, further refinement of the risk management framework is warranted to address emerging complexities.

The microfinance industry has experienced rapid advancement of technology in recent periods, and it is now necessary for existing players to have a strong technology infrastructure to sustain their market share. The Institution is continuously investing to increase automation in the processes. It is currently working to integrate its processes so real-time access to all outstanding balances and receipts is available. Room for improvement and growth exists in this domain.

As of FY25, the Pakistan microfinance industry, comprising MFBs, MFIs, and RSPs, demonstrated resilient growth with a Gross Loan Portfolio (GLP) of PKR 687.4bn (CY24: PKR 597.6bn), supported by a borrower base of 12.2 million across 4,500 branches. Microfinance Institutions (MFIs) and Rural Support Programs (RSPs) collectively hold ~23% market share, with the MFI segment witnessing a transformative performance in FY25 as its Gross Loan Portfolio (GLP) surged by ~79.9% YoY to PKR 204.0bln (FY24: PKR 113.4bln).. This expansion was primarily driven by housing-focused lending supported by subsidized provincial government initiatives, pushing the MFI active borrower base to 3.4 million and the average loan size to PKR 60,684. Asset quality within the MFI segment significantly improved, with the infection ratio lowering to ~1.1% (FY24: 1.3%), while profitability nearly doubled to a record Profit After Tax of PKR 5,647.7mn (FY24: PKR 2,904.3mn). Despite this growth, the segment continues to show a high reliance on external borrowings, which rose to PKR 61.4bn in FY25, highlighting the importance of diversified and stable funding sources to sustain future portfolio momentum.

As of FY25, JWSP holds a ~3.2% market share in the Gross Loan Portfolio, positioning it as a small-tier player in the microfinance sector.

During 6MFY26, JWSP recorded gross markup income of PKR 1,848mln, compared to PKR 3,340mln in FY25, PKR 2,859mln in FY24, and PKR 2,138mln in FY23. Markup expenses stood at PKR 635mln in 6MFY26 (FY25: PKR 1,164mln; FY24: PKR 1,168mln; FY23: PKR 862mln), translating into net markup income of PKR 1,213mln during the period (FY25: PKR 2,175mln; FY24: PKR 1,691mln; FY23: PKR 1,275mln). Non-markup income remained modest at PKR 128mln, primarily comprising miscellaneous income streams. Overall, the revenue mix continues to remain heavily reliant on core lending operations, with net markup income contributing ~90.5% of total income during 6MFY26.

Earning assets increased to PKR 11,695 as of 6MFY26 (FY25: PKR 9,222mln; FY24: PKR 8,256mln), representing a significant share of the asset base and reflecting continued expansion in the loan portfolio. Profit after tax stood at PKR 239mln for the six-month period (FY25: PKR 606mln; FY24: PKR 318mln; FY23: PKR 281mn). Profitability was supported by net markup income of PKR 1,213mln, though partly offset by non-markup expenses of PKR 972mln and provisioning expense of PKR 130mln during the period. Operational self-sufficiency remained adequate at ~106%, indicating that operating income continues to sufficiently cover operational and financial costs.

In the medium-term horizon (5 years), the Institution’s primary strategic objective is to transition from its current not-for-profit status into a "For-Profit" Entity, with the ultimate goal of incorporating as a fully regulated Microfinance Bank (MFB). This evolution is designed to unlock traditional equity-based capital markets and expand its service suite to include deposit-taking, which currently remains restricted under its NBMFC license. To support this transition, JWSP is aggressively integrating digitalization across its operations, most notably through the deployment of tablets for client-facing activities. This "digital-at-the-doorstep" approach is aimed at reducing the turnaround time for loan processing and improving data accuracy during field disbursements. While JWSP maintains a nationwide license, its expansion strategy remains disciplined and focused on the Punjab region, specifically targeting high-potential areas such as Sargodha and Jhang. These districts offer viable market penetration opportunities due to their robust agricultural and small-enterprise bases, which align with the Institution’s core expertise in Zari (Agri) and Maweshi (Livestock) financing. By leveraging its stable recovery rates and deep regional proximity, JWSP aims to build the necessary scale and operational efficiency required for its future banking conversion.

The gross loan portfolio (GLP) expanded to PKR 8,121mln as of 6MFY26, compared to PKR 6,840mln in FY25, and PKR 6,099mln in FY24, reflecting continued portfolio growth. Non-performing advances stood at PKR 78mln, improving from PKR 107mln in FY25. Consequently, the PAR-30 ratio remained contained at ~1.0%, indicating stable asset quality despite the portfolio expansion. Risk coverage levels remained strong, supported by general provisioning buffers.

JWSP maintains limited exposure to market risk, as the majority of its earning assets remain concentrated in the microcredit lending portfolio, with minimal investments in market-sensitive instruments. Investments stood at PKR 606mn, primarily in mutual funds, while exposure to government securities or equity instruments remains negligible. This structure reduces sensitivity to market volatility

The Company continues to rely predominantly on borrowings from financial institutions to fund lending operations. Borrowings increased to PKR 8,758mln as of 6MFY26, compared to PKR 6,653mln in FY25, and PKR 6,310mln in FY24. The funding base mainly comprises long-term institutional loans from development finance institutions and commercial banks, including partners such as PMIC, Blue Orchard, Symbiotics SA, Habib Bank Limited, The Bank of Punjab, State Bank of Pakistan, Invest In Vision, and Enabling Qapital.

Liquidity indicators remain adequate. Liquid assets, primarily bank deposits and mutual fund investments, amounted to approximately PKR 3,117mln (bank deposits PKR 3,110mln and cash balances PKR 6.6mln) as of 6MFY26. The liquid assets to deposits and short-term borrowings ratio improved to ~95.9%, reflecting a strong liquidity buffer relative to short-term obligations.

JWSP’s equity strengthened to PKR 2,350mln as of 6MFY26, compared to PKR 2,111mln in FY25, PKR 1,505mln in FY24, and PKR 1,187mln in FY23. The equity-to-assets ratio stood at ~19.7%, reflecting adequate capitalization to support portfolio growth.