Rating Details	Rating Type	BFR
	Dissemination Date	Current (10-Jul-26 )
	Action	Initial
	Rating	BFR 3
	Outlook	Stable
	Rating Watch	-

Rating Rationale	Factor	Comment
	Ownership	Arif Latif Securities (Pvt.) Ltd ("ALS" or "The Company") is owned by Mr. Atif Arif (50%) and Mr. Adeel Arif (50%), sons of the late founding sponsor Mr. Arif Latif, reflecting a closely held and family controlled ownership structure.
	Governance	The Board comprises two members, all Company sponsors, with an Audit Committee in place. As ALS serves only its closely associated network, this sponsor only structure is considered adequate and commensurate with its operations.
	Management and Client Services	ALS is led by experienced management with sound market knowledge. Client servicing is confined to their network only, reflecting its self-serving model rather than public retail brokerage.
	Internal Controls and Regulatory Compilance	ALS adheres to baseline SECP requirements, with KYC and AML/CFT protocols operationally in place. Their practice based internal control framework, including CEO directed oversight in place of an independent internal audit function, is considered appropriate for its current business model.
	Business Sustainability	ALS maintains a modest market presence, reporting brokerage income of PKR 2.2mln in 1HFY26 (SPLY: PKR 2.3mln) alongside profit after tax of PKR 15mln. Proprietary investments stood 19% of equity.
	Financial Sustainability	ALS maintains an equity based capital structure with no reliance on external debt. As of 1HFY26, equity stood at PKR 149.9mln (SPLY: PKR 133.6mln), reflecting growth of 12.1% YoY. Liquid Capital Balance stood at PKR 104.8mln, representing ~70% equity.

Key Rating Drivers

The assigned rating reflects ALS focused and delimited brokerage business model, under which the Company primarily facilitates the investment activities of their closely associated network through a licensed brokerage platform. This owner centric structure materially delimits fiduciary element associated with public assets at large and supports a relatively contained operational risk profile. The rating remains anchored in the continuity of this business model and the Company's conservative operating strategy. Going forward, preserving the existing client profile, maintaining governance and internal controls, and ensuring ongoing regulatory compliance will remain critical. Any expansion in the business model, leveraged products, or diversified activities may warrant a reassessment of the assigned rating.

About the Entity
	Legal Structure	Private Limited
	Year of Establishment	28-Jan-10
	Type of License	Trading and Self-clearing
	Majority Ownership	Mr. Atif Arif (50%) | Mr. Adeel Arif (50%)

Regulatory Disclosures	Analyst	Applicable Criteria	Related Research
	Usama Ali usama.ali@pacra.com +92-42-35869504 www.pacra.com	Assessment Framework | Broker Fiduciary Rating | Jan-26	Sector Study | Brokerage Firms | Feb-26

Disclaimer

This press release is being transmitted for the sole purpose of dissemination through print/electronic media. The press release may be used in full or in part without changing the meaning or context thereof with due credit to PACRA. The primary function of PACRA is to evaluate the capacity and willingness of an entity to honor its obligations. Our ratings reflect an independent, professional and impartial assessment of the risks associated with a particular instrument or an entity. PACRA opinion is not a recommendation to purchase, sell or hold a security, in as much as it does not comment on the security's market price or suitability for a particular investor.