Karachi: First Al-Noor Modaraba (FAM) has reported a notable financial downturn for the first quarter ending September 30, 2026, as outlined in the recently released un-audited financial statements. According to the report dated November 6, 2026, the Modaraba recorded a net loss of 9.08 million Pakistani Rupees, contrasting sharply with a net profit of 7.65 million Pakistani Rupees in the same period of the previous year.
The financial results, unveiled by the Board of Directors of Al-Noor Modaraba Management (Private) Limited, highlighted that the adverse performance was predominantly influenced by escalating geopolitical tensions. The ongoing conflict involving the United States and Iran, alongside increasing Houthi attacks on Saudi Arabia, has contributed to a climate of economic uncertainty. These factors have further led to inflationary pressures, increased export costs, and a general slowdown in business activities.
The Modaraba's profitability was notably impacted by subdued market turnover, which dampened market sentiment and affected trading volumes and secondary market performance. "According to information available from the Pakistan Stock Exchange (PSX)", the external geopolitical disturbances were significant contributors to the challenging operational environment and the resultant financial constraints experienced by the Modaraba during the quarter.
The report indicates that the Modaraba's unappropriated loss carried forward increased to 61.77 million Pakistani Rupees from 40.74 million Pakistani Rupees at the same time last year. The Management attributes the challenging results primarily to the external disruptions and suggests that the absence of these factors could have led to a more favorable financial outcome.
Despite the current challenges, the Management remains cautiously optimistic about the Modaraba's future prospects for the financial year ending June 30, 2027. They anticipate that improvements in macroeconomic conditions, stabilization of geopolitical developments, and a gradual recovery in market activity could potentially enhance financial performance, restore profitability, and support sustainable growth.