Pakistan Kuwait Investment Company (Private) Limited was established in March 1979 as a joint venture between the Governments of Pakistan (GoP) and Kuwait. It is equally owned by GoP through the State Bank of Pakistan (SBP) and the Government of Kuwait through the Kuwait Investment Authority (KIA), representing their respective governments.

The Kuwait Investment Authority (KIA), established in 1982, is the sovereign wealth fund of the State of Kuwait and operates independently under the Ministry of Finance.  KIA’s primary mandate is to invest Kuwait’s wealth globally across diverse asset classes—including public and private equity, fixed income, real estate, and alternatives—with a focus on long-term growth and prudent risk management. It also ensures liquidity for the state treasury and supports the financing of budget deficits when needed, helping to safeguard the country’s financial stability and secure wealth for future generations.  PKIC was established to finance economically viable and technically feasible projects.

The objective of the Company is to profitably promote industrial investment in Pakistan. PKIC has been following a prudent strategy in recent years with respect to advances and investment. Consequently, it has developed a diversified portfolio of advances, strategic and equity investments.

PKIC is equally owned by GoP through the State Bank of Pakistan (SBP) and the Government of Kuwait through Kuwait Investment Authority (KIA), representing their respective governments.

The ownership structure has remained the same since the inception of the Company. It is likely to stay the same in the foreseeable future.

The business acumen of sovereign sponsors is considered strong. The Kuwait Investment Authority (KIA), Kuwait's sovereign wealth fund, administers the State's financial reserves with the aim of generating sustainable, long-term investment returns. On the Pakistani side, the Ministry of Finance represents the Government of Pakistan's interest in PKIC, operating under the broader policy framework of the State Bank of Pakistan, which continues to play a central role in shaping the regulatory and macroeconomic environment within which PKIC operates.

The Government of Pakistan and the Government of Kuwait, as sovereign sponsors, demonstrate strong financial capacity and creditworthiness, enabling them to support long-term investments effectively. 

The overall control of the Company vests with a six-member board (BoD), having equal representation from both governments. Board’s Chairman is a representative of KIA. Whereas, the Managing Director is the representative of the GoP.

The BoD members have extensive experience in the field of finance and investment management, contributing valuable insights into investment management and supporting the development of robust risk management policies and procedures. Mr. Alaa A. A. S. Al Sarawi has served as Chairman of PKIC since August 2025, replacing Mr. Mohammad A. M. Al-Fares. He holds a degree in Business Administration and currently serves as Division Manager — Hedge Funds Portfolios Division (AIS) at the Kuwait Investment Authority (KIA), bringing specialised expertise in hedge funds and international investments. Mr. Saad Ur Rahman Khan continues to serve as Managing Director of PKIC since July 2023, with over 33 years of experience in banking and financial services. Mr. Adel Ali M. Al Dhaen is a nominee Director of KIA since August 2025, replacing Mr. Abdullah Salah A. Al Sayer. He holds a Bachelor of Commerce degree and currently serves as Director of Administrative Affairs at KIA, with senior-level expertise in government budgeting, financial operations, and organisational management. Mr. Thunayan Khalid Al Yaqout is a nominee Director of KIA since August 2025, replacing Mr. Jasem A. Al Hajry. He holds a Master of Science in Economics and a Bachelor of Science in Business Administration and Management, and currently serves as Investment Manager at KIA, specialising in equity markets. Mr. Naveed Alauddin continues to serve as a nominee of the Government of Pakistan on the Board of PKIC since February 2012. Mr. Mansoor Masood Khan was a nominee of the Government of Pakistan on the Board till April 2026. 

The board has formulated four committees, namely Executive Committee, Audit Committee, Human Resource and Remuneration Committee and Risk Management Committee, to ensure smooth and effective monitoring of operations. Five BoD meetings were held during CY25.

A.F Ferguson and Co, Chartered Accountants, is the Company’s external auditors. They have given an unqualified opinion on the financials for the year ended December 31, 2025. The Company also has an in-house internal audit department.

PKIC maintains a well-aligned organizational structure designed to ensure operational efficiency. The Company's core functions are structured into key areas, including Risk Management, Compliance, Corporate and Investment Banking, Capital Markets and Treasury, Finance, Internal Audit, Human Resources, and General Support Services. The overall operations are overseen by the Managing Director, to whom all department heads report directly, with the exception of the Head of Internal Audit—who reports to the Board Audit Committee—and the Chief Risk Officer, who reports to the Board’s Risk Management Committee.

PKIC’s management team comprises seasoned and well-qualified professionals with extensive experience and long-standing association with the organization. The Managing Director, Mr Saad Ur Rahman, brings over 30 years of diverse banking experience across Retail, Trade, SME, Commercial, Corporate, Investment, International Banking, Financial Institutions, and Risk Management. He began his career with MCB Bank Limited in 1993 and has since held senior positions at leading local and multinational banks, including Citibank, National Bank of Pakistan, Habib Bank Limited, and Bank Alfalah. He has also served on the boards of several organizations, such as Alfalah Asset Management, NBP Fund Management, NBP Kazakhstan, NBP Tajikistan, Sapphire Wind Power, and Triconboston Consulting Corporation. Mr. Saad is a graduate of the Institute of Business Administration (IBA), Karachi. Mr. Farooq Nasim serves as the Company's Chief Risk Officer, bringing an extensive banking career spanning more than 28 years in the areas of Corporate, Commercial, and Risk Management. Having started his professional journey with Union Bank in 1995, he has since held numerous senior positions in large commercial banks including Area Manager Corporate & Investment Banking at Bank Alfalah Limited, Regional Corporate Head – Central, Head Middle Markets, and Head Corporate Banking at Silk Bank Limited, Head Commercial Banking – Central at Habib Bank Limited, and Regional Head North – Corporate Banking and Deputy Chief Risk Officer at Pak Kuwait Investment Company. Mr. Atif, Group Head Treasury, Capital Markets & FIs at PKIC, is Master of Business Administration (Finance) with over 18 years of diversified professional experience in financial institutions that includes Faysal Bank. Mr. Atif specializes in treasury and capital market operations and represents PKIC at various forums. Mr. Tamim Shabbir (FCA) has been serving as CFO of Pakistan Kuwait Investment Company (Private) Limited since June 27, 2024. With 25 years of experience in finance, he previously held the CFO role at Al Baraka Bank (Pakistan) Limited from 2013.

The management is assisted by five management committees, Asset and Liability Committee, Management Committee, IT Steering Committee, Portfolio Management Commiittee,  and Compliance Committee of Management. The existence of the management committees has strengthened the overall management effectiveness of the Company.

The department heads monitor the performance of their departments on a daily basis through different MIS reports generated through the system. They report the performance of their respective departments to the MD on a periodic basis.

PKIC has developed a robust and comprehensive risk management framework aimed at identifying and mitigating risks at the organizational level supported by strong oversight from the Board of Directors, effective management supervision, stringent limit monitoring framework and well-established models including Obligor Risk Rating, Facility Risk Ratings (FRR), CAMEL rating model, Environmental & Social Risk Rating (ESRR) Model and ECL Model.

CY25 remained a transitional year for the DFI industry amid the continuation of the monetary easing cycle initiated by the State Bank of Pakistan. The sector’s balance sheet size contracted as DFIs strategically scaled back their exposure towards government securities in a declining interest rate environment. Resultantly, the asset base of the sector declined to PKR ~1.42trn during 9MCY25 (9MCY24: PKR ~2.37trn), primarily driven by a reduction in the investment portfolio, which decreased to PKR ~1.09trn (9MCY24: PKR ~2.01trn). Similarly, total borrowings reduced to PKR ~1.09trn (9MCY24: PKR ~2.11trn), reflecting lower reliance on repo and other funding facilities amid narrowing spreads. Despite the contraction in balance sheet size, profitability indicators improved materially during the period. The sector’s net mark-up income increased significantly to PKR ~32.8bln during 9MCY25 (9MCY24: PKR ~6.6bln), supported by prudent duration matching, effective market risk management, and earnings on previously booked high-yield assets, including PIBs and MTBs. Consequently, profit after tax improved to PKR ~27.7bln during 9MCY25 (9MCY24: PKR ~13.1bln).

During CY25, the Company's market share in terms of advances recorded sizeable increase compared to CY24 and stood at 35%, continuing to reflect PKIC's established position within the sector. The market share of the Company's investment portfolio moderated during the year, in line with the deliberate right-sizing of the balance sheet. On the deposit side, the Company's deposit base stood at PKR 24.7bln (CY24: PKR 39.0bln), reflecting the exit of government and public sector entity deposits during the year, as PKIC's institutional funding mix continued to evolve.

During CY25, markup earned stood at PKR 54.5bln (CY24: PKR 202.9bln), with a significant portion of income continuing to be derived from investments at PKR 48.0bln (CY24: PKR 193.5bln), followed by loans and advances. The movement in both markup earned at PKR 54.5bln (CY24: PKR 202.9bln) and markup expensed at PKR 41.2bln (CY24: PKR 200.6bln) is largely attributable to the normalisation of the interest rate environment and the deliberate right-sizing of the investment and borrowings book during the year. Consequently, net markup income stood at PKR 13.3bln in CY25 (CY24: PKR 2.2bln), reflecting the effective management of the funding matrix. The asset yield stood at 13.0% (CY24: 19.81%), while the cost of funds settled at 10.6% (CY24: 19.6%), with the spread remaining positive at 2.4%.

During CY25, non-markup income of PKIC stood at PKR 16.3bln (CY24: PKR 17.1bln). The Company continues to hold a strategic investment in Meezan Bank Limited — Pakistan's leading Islamic bank — where it maintains a substantial equity stake. Dividend income remained the major contributor to non-markup income and stood at PKR 16.1bln in CY25 (CY24: PKR 16.6bln), reflecting the sustained earnings strength of the Company's associate portfolio. Net markup income as a proportion of total income stood at 44.9% (CY24: 11.5%), reflecting the improved contribution of the core lending and investment spread business. During CY25, PKIC recorded a net reversal of provisions amounting to PKR 30mln, broadly stable compared to CY24. Consequently, the net profit of the Company stood at PKR 18.1bln (CY24: PKR 12.4bln).

As part of its strategic initiatives, PKIC’s Islamic Finance Division reported an advances portfolio of PKR 17.7bln and a total asset base of PKR 24.1bln by year-end. The division offers a diverse suite of Sharia-compliant financial products, catering to the varied needs of its clientele. Raqami Islamic Digital Bank Limited (RIDBL), a subsidiary of PKIC, has been granted a restricted license by the State Bank of Pakistan to commence pilot operations as an Islamic digital retail bank. PKIC holds a controlling equity stake of 71.24% in RIDBL. The initiative is expected to contribute to the transformation of the country’s banking landscape by promoting digital financial inclusion and expanding access to Sharia-compliant banking solutions. PKIC has undertaken multiple infrastructure development projects, primarily in the construction and power generation sectors.

The Company maintains credit risk manuals aligned with market trends, emphasizing pre- and post-disbursement monitoring. A structured credit approval process ensures prudent lending through appraisal, review, and approval. Credit proposals are assessed both individually and for their impact on the overall portfolio, using pricing matrices and internal obligor ratings. During CY25, the Company's Corporate Banking Portfolio stood at PKR 60.8bln (CY24: PKR 51.3bln). The Company remains strategically focused on financially strong and well-established entities, reflecting its refined lending practices. Asset quality remained sound, with Stage III non-performing advances fully provisioned, reflecting the effectiveness of the Board-approved risk management framework. The gross infection ratio stood at 1.42% in CY25 (CY24: 1.7%). Stage II advances stood at PKR 2.9bln (CY24: PKR 1.2bln), reflecting reclassification under the IFRS 9 staging framework, and remain subject to ongoing monitoring. The Board-approved risk management framework continues to underpin the Company's credit discipline.

The Company's asset base declined from PKR 553.3bln in CY24 to PKR 404.8bln in CY25 as PKIC continued to realign its investment strategy in the evolving interest rate environment. During CY25, Pak Kuwait’s investment book decreased to PKR 325.4bln (CY24: PKR 451.7bln). Analysis of the investment book reveals that contribution by government securities remained dominant and stood at PKR 304.9bln (CY24: PKR 436.8bln), constituting ~93.7% of the total investment portfolio. The investment strategy continues to reflect a conservative risk appetite with sizeable exposure towards government-backed instruments.

During CY25, the Company's borrowing book reduced to PKR 309.7bln (CY24: PKR 456.0bln), mainly due to corresponding maturities and reduction in investments in government securities. A substantial portion of the Company’s borrowings is constituted by term finance facilities availed from financial institutions, amounting to PKR 171.6bln. Meanwhile, PKIC’s deposit base declined to PKR 24.7bln in CY25 (CY24: PKR 39.0bln). Despite the decline, the Company maintained adequate liquidity buffers, supported by sizeable liquid assets and government securities portfolio. The Liquidity Coverage Ratio stood compliant during the year, while liquid assets to deposits and borrowings remained strong at 91.9% (CY24: 89%).

Sustainable profitability continued to augment PKIC’s capitalization and, in turn, its risk absorption capacity. A strong equity base of PKR 65.1bln during CY25 (CY24: PKR 46.7bln), mainly comprising Tier-I capital, provides comfort to absorb the impact of adverse macroeconomic shocks. The Company’s capital adequacy ratio improved to 49.9%  (CY24: 41.3%), remaining well above the regulatory requirement. The Company’s equity-to-total-assets ratio also strengthened to 16.1% (CY24: 8.4%). The strong internal capital generation and improved profitability profile continue to support the Company’s capitalization indicators comfortably above the minimum required thresholds.