PACRA Maintains the Entity Ratings of National Credit Guarantee Company Limited

National Credit Guarantee Company Limited's (NCGCL or the "Company") ratings reflect the Company's sovereign-linked ownership structure — a joint venture between the Ministry of Finance, Government of Pakistan, and Karandaaz Pakistan — which provides strong institutional backing, implicit capital support, and clear policy alignment with the Government's financial inclusion agenda. The ratings further incorporate the Company's structured capital framework, anchored by an initial capitalisation of PKR 8 billion, bifurcated into PKR 2 billion of ring-fenced Core Capital and PKR 6 billion of Risk Capital governing guarantee issuance capacity. Complementing these structural strengths is a multi-layered, risk-based mandate execution approach that subjects each strategic partnership to rigorous assessment across partner institution quality, sectoral concentration, and obligor-level exposure — ensuring capital adequacy is preserved while developmental objectives are pursued.
During the review period, NCGCL meaningfully advanced its developmental mandate through two strategically significant transactions. First, in collaboration with UNIDO under the EU-funded PAIDAR Programme, the Company co-structured Pakistan's inaugural guarantee-backed blended finance facility for rural enterprises — implemented through Pak Brunei Investment Company, Thardeep Microfinance Foundation, and SAFCO Microfinance Company. The facility's layered architecture reduces credit risk at the obligor level while channelling structured financing to rural MSMEs in underserved markets of Sindh — a segment characterised by acute financial exclusion and limited collateral capacity. Second, NCGCL executed a PKR 2.0 billion Loan Portfolio Guarantee Agreement with Pakistan Microfinance Investment Company (PMIC), targeting women entrepreneurs, smallholder farmers, and off-grid communities with a thematic focus on renewable energy access. The risk-sharing structure embedded in this arrangement is expected to catalyse incremental lending from PMIC toward priority segments that would otherwise remain beyond the frontier of commercial credit delivery. During the period ending Dec'2025, the Company made profit after tax amounting to PKR 432mln (CY24: PKR 195mln), entirely from the investment income, while the equity base stood at PKR 7.9bln (CY24: 7.5bln).
The Company's strong sponsor backing, robust risk assessment processes, and well-defined operational policies aimed at ensuring obligor credibility are key considerations in its credit rating. Rating constraints principally reflect the early-stage seasoning of the guarantee portfolio, the elevated credit risk profile of target obligor segments, and Pakistan's challenging macroeconomic operating environment.

About the Entity
The National Credit Guarantee Company Limited is a public-private partnership, jointly owned by Karandaz Pakistan (56%) and the Ministry of Finance, Government of Pakistan (44%). Incorporated as a limited liability company under the Companies Act, 2017, on March 18, 2022, NCGCL has been granted a license to operate as a Non-Banking Finance Company (NBFC). The Company is authorized to offer Investment Finance Services in accordance with the Non-Banking Finance Companies (Establishment and Regulation) Rules, 2003, and the Non-Banking Finance Companies and Notified Entities Regulations, 2008. NCGCL received its certificate of commencement of business on December 24, 2024.
The Board consist of eight (8) Directors, including the Chief Executive. Except for the Chief Executive, all Directors are non-executive. Ammar Habib Khan, Chief Executive Officer (CEO) is a CFA Charterholder, FRM certified, and a recognized Sustainability & Climate Risk (SCR) professional in Pakistan with over 14 years of experience in Wholesale Risk Management, Corporate Strategy, Energy Economics, and Asset Management.