Karachi: Bank Alfalah Limited has announced the unconsolidated condensed interim financial statements for the quarter ending March 31, 2025, indicating a period of economic stabilization for Pakistan. The bank's Board of Directors has declared an interim cash dividend of PKR 2.5 per share, a 25% increase from the previous year.
On April 17, 2025, the Board highlighted the country's macroeconomic environment, noting a staff-level agreement with the International Monetary Fund (IMF) on the USD 7 billion, 37-month Extended Fund Facility. An additional 28-month arrangement under the IMF's Resilience and Sustainability Facility, worth USD 1.3 billion, was also achieved, signaling positive engagement with the IMF.
According to information available from the Pakistan Stock Exchange (PSX), the KSE-100 index experienced a modest increase of 2.3% in the first quarter of 2025, closing at 117,807 points. This performance was bolstered by the IMF agreement and the government's resolution plan for circular debt.
The State Bank of Pakistan reported a decline in foreign exchange reserves from USD 11.7 billion in December 2024 to USD 10.7 billion by March 2025 due to external debt repayments. However, projections indicate a rise to USD 13 billion by June 2025. The rupee depreciated slightly by 0.57% to PKR 280.16/USD by the end of March 2025.
Inflation trends showed a decrease, with headline inflation slowing to 0.7% in March 2025 from 4.1% in December 2024, though core inflation remained at 9.0%. The State Bank maintained the policy rates at 12%.
Economic activity in Pakistan grew, with the real GDP increasing by 1.73% in the second quarter of FY25. The agriculture and service sectors supported this growth, while large-scale manufacturing contracted slightly. Tax collection by the Federal Board of Revenue rose by 25.9% YoY to PKR 5.6 trillion in 1HFY25, contributing to a reduced fiscal deficit of 1.2% of GDP.
Moving forward, Bank Alfalah aims to leverage the improving economic environment to achieve sustainable growth. The bank plans to expand its deposit base, enhance customer-centric services, and support small and medium enterprises through financing solutions. Technological innovations and digital transformation are key focuses to improve financial services.
PACRA has assigned Bank Alfalah an 'AAA' (Triple A) long-term entity rating and an 'A1+' (A-One Plus) short-term rating, both with a 'Stable' Outlook. The bank remains committed to corporate social responsibility and aligning with the United Nations Sustainable Development Goals.
Through strategic initiatives and technological advancements, Bank Alfalah aims to maintain its role in supporting Pakistan's trade and financial flows, while contributing to economic recovery and shareholder value.