Agahe Pakistan (“AP” or the “Company”) was incorporated on January 22, 2016, as a company limited by guarantee not having a share capital under Section 42 of the repealed Companies Ordinance, 1984. The Company is licensed by the Securities and Exchange Commission of Pakistan (SECP) to undertake Investment Finance Services as a Non-Banking Microfinance Company under Rule 5 of the Non-Banking Finance Companies Rules, 2003.

AGAHE Pakistan (“AP”) was established in 2016 with an exclusive mandate to undertake microfinance activities. The Company was spun off from the “Association for Gender Awareness and Human Empowerment (AGAHE),” a non-profit organization originally founded in 2010.

AGAHE Pakistan offers a diversified suite of microfinance products tailored to the financing needs of low- to middle-income individuals, particularly in rural and semi-urban areas of Punjab. Its core lending products include Micro-Enterprise, General Business loans, Shariah Compliant- Mairaj Murabaha, Livestock Loans which form the backbone of the portfolio and support small businesses and farmers, shopkeepers, and self-employed individuals through working capital and expansion financing.  In addition, AGAHE Pakistan offers Solar, Auto, Educational, and Housing loans, addressing energy access, mobility, education, and housing improvement needs. AGAHE Pakistan operates across 16 districts in Punjab, primarily concentrated in South Punjab with gradual expansion into Central Punjab, including Taunsa Sharif, Kot Addu, Vehari, Bahawalpur, Bahawalnagar, Rajanpur, Muzaffargarh, Multan, Layyah, Rahim Yar Khan, Khanewal, Pakpattan, Okara, Sahiwal, Lahore, and Kasur. The lending portfolio is well-diversified across sectors, with a primary concentration in Micro-Enterprise loans (~43.4%), General Business loans (~19.9%), Mairaj Murabaha (~18.04%) and Livestock (~13.6%) of the total GLP respectively.

AGAHE Pakistan is a Public Unlisted Company Limited by Guarantee not having a Share Capital. The control currently vests with 7 members. Members do not have any shareholding in the Company but have provided a guarantee of a certain amount as required in the regulations.

All members of the Board bring substantial professional experience and possess in-depth knowledge relevant to the microfinance and development finance sectors. Their diverse expertise contributes meaningfully to strategic decision-making, governance oversight, and the overall growth and sustainability of the Company.

The Board comprises of highly experienced professionals equipped with the necessary skills and strategic insight to effectively guide the Company's direction. Dr. Abid Aman Barki, the Chairman, is an expert in economic affairs, bringing over 44 years of extensive industry experience across various leadership roles. His deep understanding of the sector significantly contributes to the Company's strategic vision and governance.

The Company’s consistent growing equity base, cash flows, and sound financial management practices underscore its continued financial stability and resilience. These strengths are further supported by diversified revenue streams and a disciplined strategic approach to financial and operational sustainability. While the Company maintains consistently improved and stable 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.

The overall governance of the Company rests with a seven-member highly qualified and experience Board of Directors (BOD), which includes three independent directors and ensures gender diversity through female representation. The board is supported by three specialized sub-committees: (i) Audit Committee, (ii) Human Resource Committee, and (iii) Risk Management Committee, which provide focused oversight and expert guidance in their respective domains. Meeting attendance has been satisfactory, demonstrating the members' commitment. Additionally, the minutes are thoroughly documented, ensuring transparency and accountability in all board activities.

The Board comprises members with extensive and diverse professional experience, ensuring effective governance and strategic oversight. The Chairman, Dr. Abid Aman Barki, brings over 45 years of experience and also serves on various high-level government committees and task forces, strengthening the Board’s policy insight. Among the Board members, Dr. Suhail Saleem serves as an Independent Director and is currently Director General Investment and Trade at PBIT, with over 33 years of professional experience, while Muhammad Yaqoob, also an Independent Director, is a Professor at Government FMF Degree College with more than 27 years of experience. Ms. Bushra Naheed, an Independent Director and Asst. Professor at Punjab University, contributes over 29 years of experience, alongside Adil Mehmood, who holds a ACMA and serves as a Business Finance Partner at renowned Pvt. Company. Ms. Sana Zahid also serves as a Director on the Board and brings 16 years of professional experience.

The presence of three independent directors enhances the Board's ability to provide objective oversight and informed analysis of strategic decisions, thereby strengthening the Company's overall governance framework. During FY25, multiple Board meetings were convened to ensure active engagement in key policy and operational matters.

Ilyas Saeed & Co., Chartered Accountants (SBP A- Category firm), serve as the External Auditors of the Institution. For FY25, they issued an unqualified opinion on the financial statements, affirming the accuracy and reliability of the Institution 's financial reporting. An Internal Audit Department is in place, which reports directly to the Audit Committee, further strengthens the Institution 's commitment to transparency and accountability. Additionally, a dedicated Risk and Compliance Department ensures adherence to regulatory requirements and internal policies and reports to Board Risk Management Committee.

The Company's operations are structured across seven key departments: (i) Institutional Development, (ii) Operations, (iii) Accounts & Finance, (iv) Risk & Compliance, (v) Internal Audit, (vi) Administration, and (vii) Information Technology. Each department is led by a seasoned professional who reports directly to the Chief Executive Officer (CEO). In alignment with best governance practices, the Head of Internal Audit and Head Of Risk & Compliance maintains functional independence by reporting directly to the Board Audit and Risk Committees.

The senior management team brings extensive experience and deep expertise to the sector. The Chairperson, Dr. Abid Aman Burki, a renowned economist, serves as Professor of Economics at LUMS University, Lahore. The CEO, Mr. Barak Ullah, has nearly two decades of experience in the microfinance field. The CFO, Mr. Muhammad Khalid, ACA, a seasoned Chartered Accountant and Associate Member of ICAP, has been with AGAHE Pakistan since 2018, with over 14 years of diverse experience. This accomplished leadership is backed by a team of skilled professionals, ensuring strong management and operational excellence.

The Company has established various formal management committees for overseeing critical operational areas, performance monitoring and ensuring adherence to policies and procedures. 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 Company continuously heavily investing in its technological infrastructure to boost automation and efficiency across departments, addressing a vital need in the evolving microfinance sector. The Company is currently undergoing a transformation from manual processes to fully digitized paperless microfinance operations. This transition encompasses the digitalization of core processes and the development and implementation of an advanced Management Information System (MIS) and Mobile App. The MIS is designed as a centralized platform to digitally capture and process operational and financial data, enabling timely, accurate reporting to support informed decision-making. The system has been developed and is presently in the testing phase. Upon successful completion of the pilot run, the MIS is expected to enhance operational efficiency, strengthen data integrity, and reinforce internal control mechanisms across the Company. 

The Company has adopted a robust risk management framework to effectively address operational, liquidity, and credit risks. Its loan approval process is fully digitized and decentralized, facilitating efficient decision-making.

The Company continuously heavily investing in its technological infrastructure to boost automation and efficiency across departments, addressing a vital need in the evolving microfinance sector. The Company is currently undergoing a transformation from manual processes to fully digitized paperless microfinance operations. This transition encompasses the digitalization of core processes and the development and implementation of an advanced Management Information System (MIS) and Mobile App. The MIS is designed as a centralized platform to digitally capture and process operational and financial data, enabling timely, accurate reporting to support informed decision-making. The system has been developed and is presently in the testing phase. Upon successful completion of the pilot run, the MIS is expected to enhance operational efficiency, strengthen data integrity, and reinforce internal control mechanisms across the Company.

As of FY25, the microfinance industry reported Gross Loan Portfolio of ~PKR 687,000mln. Microfinance institutions (MFIs) and rural support programs (RSPs) contributed ~PKR 204,000mln, accounting for ~29.6% of the total GLP. The industry serves ~12.2mln active borrowers, of which MFIs and RSPs represented ~3.4mln, or around ~27%. The infection ratio for MFIs and RSPs remained low at ~1.1% in FY25, improving from ~1.3% in FY24, and compared favorably with microfinance banks (MFBs). This relatively stronger asset quality reflects their smaller, community-oriented lending models, more cautious credit expansion, and deeper borrower engagement. Effective liquidity management remains critical for MFIs, given their relatively high operating cost structure. On average, ~60% of their borrowings are sourced from commercial banks, followed by foreign lenders (~12%), with the remainder largely comprising institutions such as PMIC and SBP-related funding channels. The sector is regulated by SECP, which provides the overall regulatory framework and oversight for the microfinance sector to ensure financial stability and compliance with prudential standards. MFIs posted strong profitability of ~PKR 5,700mln in FY25, supported by higher net interest income and growth in the lending portfolio. The average loan size increased to ~PKR 60,684, contributing to portfolio expansion and supporting income generation, albeit with a relatively lower cost efficiency impact. The operating environment for MFIs in Pakistan remains exposed to macroeconomic volatility and geopolitical uncertainties, which continue to affect economic activity, particularly in low-income and informal segments. Elevated uncertainty contributes to volatility in essential commodity prices, including food, fuel, and utilities. Given the limited income flexibility of low-income borrowers, such price pressures can erode disposable income, thereby constrain repayment capacity and increasing stress on household cash flows. Over time, this may translate into pressure on the asset quality of MFIs.

As of 9MFY26, the Institution’s Gross Loan Portfolio (GLP) reached ~PKR 3.53bln, reflecting consistently improved growth of 34.61% from FY 2025. AGAHE Pakistan holds a market share of around ~1.32% in terms of GLP and is positioned as an emerging MFI within microfinance sector. AGAHE Pakistan demonstrates strong alignment with the sector’s financial inclusion objectives, with ~99.3% of its 83,526 active borrowers being female.

AGAHE Pakistan recorded interest income of ~PKR 1,136mln during 9MFY26 (9MFY25: ~PKR 847mln), reflecting a growth of ~34%. This increase was primarily driven by higher markup earned on advances, along with improved market penetration, as the borrower base expanded to 83,526 in 9MFY26 (FY25: 71,065). Markup income from advances contributed ~PKR 1,022mln. On a full-year basis, interest income stood at ~PKR 1,115mln in FY25 (FY24: ~PKR 894mln), registering an increase of ~25%, mainly attributable to improved returns on the lending portfolio and investment book.

AGAHE Pakistan reported a profit after tax of ~PKR 240mln during 9MFY26 (9MFY25: ~PKR 174mln), reflecting a growth of ~37.9%. This strong bottom-line expansion is indicative of improved revenue generation, likely supported by growth in the lending portfolio and higher net interest margins. Profit before provisioning increased to ~PKR 274mln in 9MFY26, compared to ~PKR 197mln in 9MFY25, highlighting sustained strength in core operating performance. Going forward, the sustainability of profitability will depend on the Company's ability to maintain asset quality amid macroeconomic pressures.

Agahe Pakistan’s strategic approach is centered on expanding its market outreach and share by delivering reliable and efficient microfinance services through fully digitized channels, supporting lawful economic and livelihood generation activities, initially across Punjab and subsequently nationwide. The Company aims to address the evolving needs of its customers through a diverse range of both conventional and Shariah-compliant products.

As of 9MFY26, the Gross Loan Portfolio (GLP) stood at ~PKR 3,529mln, reflecting a growth of ~49% compared to 9MFY25 (PKR 2,366mln). Non-Performing Loans (NPLs) saw a slight increase, reaching ~PKR 40mln in 9MFY26, up from ~PKR 31mln in 9MFY25, and ~PKR 20mln in FY25. Despite this modest increase, overall PAR (%) reduced to 1.16% from 1.30% from corresponding period, asset quality slightly improved, underpinned by appropriate provisioning and consistent portfolio quality indicators.

The Company has placed short-term investments in Term Deposit Receipts (TDRs), amounting to ~PKR 572mln in 9MFY26 (FY25: ~PKR 248mln), with banks including National Bank of Pakistan, JS Bank Limited, Habib Bank Limited, and the Bank of Punjab. From a market risk perspective, the risk is low  , as these are short-term deposits and are less affected by changes in interest rates. The higher investment in TDRs also shows better liquidity management and use of excess funds.

The Company has diverse borrowing avenues, including the Pakistan Microfinance Investment Company (PMIC), State Bank of Pakistan (SBP), National Bank of Pakistan (NBP), Habib Bank Limited (HBL), The Bank of Punjab (BOP), Allied Bank Limited and JS Bank, which strengthens its funding base. Borrowings increased to ~PKR 3,177 mln by 9MFY26, up from ~PKR 2,180mln in 9MFY25.

In 9MFY26, AGAHE Pakistan maintains a sound liquidity position, with Cash and cash equivalents of ~PKR420mln (9MFY25: ~PKR 615mln). The current ratio was 2.4x in 9MFY26, down from 3.3x in 9MFY25, indicating that despite the decline, the Company maintains adequate short-term financial coverages.

As an NBFI under SECP regulation, AGAHE Pakistan is not subject to CAR requirements. However, total reserves and funds increased to ~PKR 1,424mln by 9MFY26, up from ~PKR 1,106mln in 9MFY25. The equity-to-assets ratio stood at ~28.5% in 9MFY26, showing a gradual decline from ~32% in 9MFY25, yet remaining healthy and well-aligned with risk exposure. Total reserves and funds stood at ~PKR 1,184mln in FY25 (FY24: ~PKR 932mln).