PACRA Maintains Entity Ratings of National Rural Support Programme

National Rural Support Programme's (‘NRSP’ or ‘the Company’) ratings reflect its significant contributions to poverty reduction, rural empowerment, inclusive growth, and impactful social development projects in Pakistan. NRSP's governance framework remains strong. The Company has expanded its lending portfolio by leveraging its extensive geographic presence in 72 districts across Pakistan, including Azad Jammu and Kashmir, reaching PKR 23,288mln during 9MFY24, reflecting a growth of ~5%. The microlending portfolio generated a return of ~24%. To fund the operations, NRSP borrows from financial institutions (9MFY24: PKR 15,253mln) and receives grants ( 9MFY24: PKR 5,852mln) from local (~92%) and foreign (~8%) sources. Supported by sound financial and effective risk management systems, the Company has reduced its non-performing loans by ~55%, during 9MFY24. The bottom line is supported by the investment portfolio (9MFY24: PKR 7,129mln), generating supplementary income. During 9MFY24, NRSP reported an investment income of PKR 838mln, with the majority (~80%) coming from bank deposits and the remainder from investments in subsidiary companies. This supports the Company's liquidity profile. NRSP functions as the holding company for its subsidiaries, which are currently in their growth phases and require financial backing. This ongoing support places constraints on NRSP's cash flows, limiting its financial flexibility. NRSP maintains a strong equity base, which has been on an increasing trend through profit accumulation. This enhances the overall financial risk profile of the Company.
The ratings are contingent on NRSP’s ability to maintain its asset quality and sustain growth in business volumes. The impact of technological advancements on the NRSP’s operational efficiency, performance of its investment book and risk management remain essential factors. The sustainability of improved margins remains crucial going forward.

About the Entity
National Rural Support Programme (‘NRSP’ or ‘ the Company’), established on November 2, 1991, is a registered not-for-profit organization in Pakistan under Section 42 of the Companies Act 2017. As a Public Company Limited by guarantee, it operates as a Large-Sized Company (LSC) focused on sustainable development. With a license to provide Investment Finance Services under NBMFC, NRSP employs a diverse range of programmatic tools. Its 16-member team includes 10 Board members and 6 members in the general body. The Board is led by Chairman Mr. Shoaib Sultan Khan, with Dr. Rashid Bajwa serving as the CEO. Dr. Bajwa is supported by a team of professionals.