KARACHI: First Prudential Modaraba (FPM), managed by Awwal Modaraba Management Limited, has reported a growth in revenues from PKR 178.53 million in FY23 to PKR 201.65 million in FY24. This increase comes as Pakistan’s economy shows signs of stabilization following a challenging period.
In the financial year 2024, the country's GDP rebounded to a growth rate of 2.4%, primarily driven by the agricultural sector. This recovery was bolstered by several positive economic indicators including the stabilization of the exchange rate and reduced inflation rates, which dipped from 29.7% in December 2023 to 12.6% by June 2024. The government’s efforts to secure funding and support from international bodies such as the IMF have also been pivotal, with the approval of a $3 billion Stand-By Arrangement (SBA) paving the way for further economic recovery measures.
According to information available from the Pakistan Stock Exchange (PSX), during this period, the KSE-100 index showed a significant upward movement. The benchmark index grew by 25.6% in the first half of FY24, closing at 78,445 points, driven by improved investor confidence and favorable economic conditions.
Strategically, FPM saw major corporate changes including the divestment of Pak Brunei Investment Company Ltd.'s total interest in Awwal Modaraba Management Limited to Wasl Investment Finance Limited. This transfer was officially sanctioned by the Registrar Modaraba of the Securities and Exchange Commission of Pakistan (SECP) on September 19, 2024. The divestment aligns with the company's conservative operational approach to maintain robust asset quality and profitability, which has been reflected in their financial outcomes.
Despite a decrease in profits after taxation from PKR 98.55 million in FY23 to PKR 61.70 million in FY24, due to lower non-core profits and higher provisioning under IFRS-9, the management of FPM remains optimistic about the future. The board has implemented a conservative financial strategy to ensure stability and growth amid the shifting economic landscape. Moreover, FPM's commitment to compliance with Shariah principles and corporate governance continues to be a top priority, ensuring that operations align with ethical and regulatory standards.
On behalf of the board, Chairman Khalid Aziz Mirza extended gratitude to all stakeholders for their continued support and trust in the Modaraba’s operations and strategic direction.