PACRA Maintains the Entity Ratings of National Rural Support Programme

National Rural Support Programme ("NRSP" or the "Company") has established itself as Pakistan's largest Rural Support Programme and one of the country's leading microfinance and development institutions. The Company operates through two complementary pillars: a microfinance arm extending small loans to low-income households to generate sustainable markup income, and a development arm implementing donor- and government-funded programmes in housing, education, and livelihoods, together generating diversified income streams that support the Company's institutional sustainability and social impact mandate. Since its inception, the Company has remained committed to poverty alleviation through financial inclusion, community development, and livelihood enhancement. As of Mar'26, NRSP served over 3.87mln low-income households through 257,671 Community Organizations, reflecting extensive grassroots outreach. During FY25, the Company further strengthened its market position, supported by sound governance and prudent risk management. An experienced Board and management team provide strategic direction, governance oversight, and operational discipline. Pakistan's microfinance ecosystem comprises MFBs, MFIs, RSPs, and FinTechs, with MFBs accounting for ~77% of the Gross Loan Portfolio. During CY25, the operating environment improved, supported by easing inflation, lower interest rates, exchange rate stability, and positive GDP growth. Nevertheless, the Sector continues to face challenges relating to elevated credit risk, weak capitalization, and concentration in agriculture and livestock financing, despite a notable reduction in sector-wide losses. Against this backdrop, NRSP maintained a strong market position, supported by sustained financing growth, healthy asset quality, and effective risk management. NRSP remains Pakistan's second-largest microfinance provider by active borrowers, with an estimated ~7% share of the industry's Gross Loan Portfolio. Financially, NRSP's profile strengthened during FY25, underpinned by improved profitability and expansion in its financing portfolio. Gross micro-credit advances increased by ~32.7% to PKR 31.7bln (FY24: PKR 23.9bln), while total income grew by ~20% to PKR 16.9bln (FY24: PKR 14.1bln), primarily driven by higher net markup income. Consequently, profit after tax increased by ~34% to PKR 2.9bln (FY24: PKR 2.2bln). Asset quality strengthened, with the infection ratio improving to ~1.7% (FY24: ~2.4%). The investment portfolio remained concentrated in subsidiaries, term deposits, bank placements, and investment properties, limiting market risk exposure. Investments in subsidiaries increased to PKR 4.4bln (FY24: PKR 3.7bln), while total investments represented ~9.6% of total assets. The funding profile remained diversified across commercial banks, development finance institutions, and multilateral agencies, with borrowings increasing to PKR 21.6bln (FY24: PKR 18.2bln), while equity strengthened to PKR 18.8bln (FY24: PKR 15.8bln), supported by internal profit generation. During 9MFY26, the financing portfolio expanded significantly to PKR 72.7bln, profit after tax increased to PKR 3.5bln, borrowings rose to PKR 62.1bln, primarily reflecting funding obtained under government-backed on-lending schemes, while equity strengthened further to PKR 22.2bln.
Going forward, the ratings remain dependent on NRSP's ability to preserve asset quality, sustain profitability, maintain adequate capitalization amid rapid balance sheet expansion, and effectively manage the risks associated with the growing government-supported financing portfolio.

About the Entity
NRSP was established on 02-Nov-91, 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 14-member team includes 10 Board members and 4 members in the general body. The Board is chaired by Mr. Shoaib Sultan Khan, with Dr. Rashid Bajwa serving as the CEO. They are supported by an experienced team.