Karachi: The latest financial disclosures under the Shariah compliance framework have revealed significant movements in financing and revenue streams for the period ending December 31, 2025. The data, released on May 4, 2026, highlights a notable shift in financial strategies within the Islamic finance sector.
The condensed interim statement of financial position indicates a reduction in financing obtained through Islamic modes. Long-term financing as of December 31, 2025, stood at 293.07 million rupees, a decline from 510.37 million rupees the previous year. Similarly, short-term financing decreased to 252.26 million rupees from 441.83 million rupees.
Interest or mark-up accrued on conventional loans or advances saw a minor move, decreasing from 2.48 billion rupees to 2.45 billion rupees. On the other hand, short-term shariah-compliant investments were reported at 1.82 billion rupees, a new addition for the year, indicating a strategic pivot towards more compliant investment avenues.
The condensed interim statement of profit or loss reveals that revenue earned from shariah-compliant business operations reached 35.88 billion rupees, an increase from 31.31 billion rupees the previous year, marking a very large or significant move of 14.63%.
According to information available from the Pakistan Stock Exchange (PSX), profits earned from Islamic modes of financing were reported at 30.76 million rupees, compared to 87.25 million rupees the previous year, reflecting a downward trend in this income category.
In the realm of other income, a significant gain was noted from liabilities written back, which amounted to 2.15 billion rupees, compared to a mere 62,870 rupees in the prior year. This reflects a substantial realignment in financial liabilities and asset management for the period.
Non-shariah compliant income sources also presented notable figures. The gain on settlement of short-term loans and accrued markup was recorded at 295.01 million rupees, while the gain on conversion of preference shares into ordinary shares reached 1.97 billion rupees, underscoring strategic financial restructuring efforts.
The company’s relationships with shariah-compliant financial institutions such as Al Baraka Bank (Pakistan) Limited, Bank Islami Pakistan Limited, Dubai Islamic Bank Limited, Bank Makramah Limited, and Faysal Bank Limited, remain integral to its operational framework, with various bank balances and loan arrangements under Islamic financial principles.
The disclosures underscore a continued commitment to Shariah-compliant financial practices while navigating the complexities of both compliant and non-compliant income sources.