PACRA Maintains the Entity Ratings of Kashf Foundation

Kashf Foundation (herein referred to as “KF” or “The Foundation) incorporated on February 15, 2007, as a public company limited by guarantee, and licensed as a not-for-profit organization. The prime mission of the Foundation is to improve the economic status of women and building their entrepreneurship skills through lending the business and consumption loans. The portfolio coverage in terms of the gross loan portfolio (GLP) presents the Foundation as a market leader in the dedicated non-depository microfinance segment. The Foundations’ product slate is divided into nine categories and covers multiple industry segments. The Kashf Karobar Karza (KKK) is their prime product followed by Kashf Fauri Karza (KFK), Kashf Maweshi Karza (KMK), and Kashf Murabaha (KM). The assigned rating takes comfort from the consistent growth in the loan portfolio over the last three years while sustaining PAR (Portfolio at Risk) at 0.42% and generating sufficient cashflows to augment their disbursements level. During the 1HFY26, the GLP of the Foundation improved and stood at ~PKR 42,526mln, with a growth of ~12.8% (FY25: ~PKR 37,714mln; FY24: ~PKR 29,475mln). The Kashf Foundation successfully grew its lending portfolio, added new customers, and expanded its outreach through new branches, all while maintaining caution regarding the infection ratio. Last year, the microfinance industry faced multiple macroeconomic challenges. However, this year, economic indicators showed signs of stabilization, with a gradual reduction in policy rates and inflation. This stabilization is further expected to provide crucial support to the microfinance sector. During 1HFY26, the Foundation’s net income stood at ~PKR 9,647mln (~14% YoY growth), with a surplus after tax of ~PKR 1,543mln. The Board of the Foundation operates primarily in an advisory capacity, consisting of reputable and well-educated individuals. The Foundation boasts a stable and experienced senior management team, supported by clear reporting lines outlined in a formalized organogram and a robust monitoring process. Through integrated technology, the head office facilitates real-time assessment of recoveries and disbursements from all its branches, ensuring a well-controlled environment. The Foundation has a highly focused strategy within the compliance and audit department to monitor customers from loan disbursement to the recovery process. A dedicated team of professionals oversees the transparency of these processes.
The Foundation’s rating depends on its ability to deliver consistent growth amid a challenging operating environment. Continued expansion in profitability and the financing portfolio, together with the maintenance of comfortable liquidity buffers and resilient margins, remain critical. Sustained recovery performance and asset-quality stability will also remain imperative.

About the Entity
Kashf Foundation (“KF”) was incorporated with the Securities and Exchange Commission of Pakistan (SECP) in 2007 as a Public Company Limited by Guarantee under Section 42 of the Companies Ordinance, 1984 (now Companies Act, 2017). The Board comprises 10 members. Dr. Hafiz Ahmed Pasha is the Chairman of the board. Ms. Roshaneh Zafar is the founder and CEO of the foundation.