Karachi: The Pak-Gulf Leasing Company Limited (PGL) has released its 33rd Annual Report, highlighting a year of cautious growth and strategic financial management amid challenging economic conditions. The report, dated October 7, 2026, details the company's financial and operational achievements for the fiscal year ending June 30, 2026.
During the fiscal year 2025-26, PGL navigated a complex economic landscape characterized by fluctuating interest rates, inflation, and energy costs. Despite these challenges, the company achieved a cautious increase in its financing business. The easing of interest rates and an improvement in business activity provided opportunities for growth, while the company maintained a focus on credit risk management and asset quality.
According to the report, PGL originated 11 new finance leases and 16 auto-finance loans, with a combined value of Rs. 683 million, marking a significant rise from the previous year's Rs. 169 million. The total disbursement under lease financing climbed to Rs. 422 million from Rs. 114 million in the prior year, indicating the company's gradual return to business expansion.
Pak-Gulf Leasing Company's core business remains asset-based financing, guided by a structured Asset Diversification Policy. This policy ensures that the leasing portfolio is diversified and comprises assets of sound quality. The company evaluates the Forced Sale Value (FSV) of assets and the quality of collateral securities to mitigate credit risk.
According to information available from the Pakistan Stock Exchange (PSX), PGL's total assets as of June 30, 2026, were Rs. 1,475 million, up from Rs. 1,446 million in the previous year, reflecting a 2.0% increase. The gross investment in finance leases grew modestly to Rs. 937 million from Rs. 934.4 million. Net investment, after accounting for unearned income and provisions for expected credit losses, stood at Rs. 756.7 million, up from Rs. 738.6 million the previous year.
The report underscores PGL's commitment to maintaining asset quality and protecting its financial position despite a challenging economic environment. The company achieved a strong recovery rate of 92.45% during the fiscal year, demonstrating effective recovery strategies and prudent credit management.
Looking ahead, Pak-Gulf Leasing Company Limited plans to continue monitoring interest rates, economic conditions, and credit risks while pursuing sustainable business growth. The company remains focused on achieving financial stability and operational sustainability in an evolving market landscape.