Rating Details	Rating Type	Social Impact and Performance Rating
	Dissemination Date	Current (13-Dec-23 )	Previous (13-Dec-22)
	Action	Maintain	Initial
	Rating	SIP3	SIP3
	Outlook	Stable	Stable
	Rating Watch	-	-

Rating Rationale	Factor	Comment
	Ownership/Members	CEIP is a public unlisted company incorporated under Section 42 of the Companies Ordinance 1984. The Company has three members at the helm.
	Governance	The Board of Directors consists of six members, including two independent directors, highlighting a robust governance framework. Additionally, the presence of two board committees, each with independe
	Management	The senior management is qualified and possess extensive experience to efficiently managing business operations. Moreover, the turnover among senior management personnel remains notably low.
	Social Impact	CEIP has a publicly available mission statement which clearly outlines the target market and the manner in which CEIP intends to serve the market. A Social Performance Committee may be established at
	Business Sustainability	CEIP heavily depends on borrowing as its main source of funding. The increase in interest rates has caused a decrease in markup income (1QFY24 : ~PKR 200mln). This downturn in performance has consequ
	Financial Sustainability	The company has an adequate equity base of ~PKR 453mln at end-Sep'23. The OLP amounting to ~PKR 1,727mln at end Sep'23 with constitutes a market share of ~0.3%.

Key Rating Drivers

The CSC Empowerment & Inclusion Programme ('CEIP' or the 'Company') aims to provide microfinance services to underprivileged households in Pakistan, focusing particularly on financial inclusion, empowering women, and supporting the youth. Moreover, CEIP has engaged in various social initiatives, resulting in a sustained and notable impact within the community. Going forward, the rating will rely on management's capacity to secure funds and enhancement of market share. CEIP's commitment to its social objectives and proactive measures in that regard will significantly influence the assigned rating.

About the Entity
	Legal Structure	Not-for-profit organization (Section-42)
	Year of Establishment	19-Mar-15
	Type of License	Non-banking Microfinance Company (NBMFC)
	Majority Ownership	N/A

Regulatory Disclosures	Analyst	Applicable Criteria	Related Research
	Muhammad Azmat Shaheen azmat.shaheen@pacra.com +92-42-35869504 www.pacra.com	Assessment Framework | Social Impact and Performance Rating | Sep-23	Sector Study | Microfinance | Sep-23

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