Karachi: The First IBL Modaraba, managed by IBL Modaraba Management (Private) Limited, has released its annual report for the fiscal year ending June 30, 2026. The report highlights a pivotal change in management, alongside a detailed review of the company's financial performance and market conditions.
During the fiscal year, a transition in management control was approved by the Registrar Modaraba of the Securities and Exchange Commission of Pakistan (SECP), leading to a reconstitution of the Board of Directors and the appointment of new directors. This development aims to bolster governance and steer the Modaraba towards a progressive future.
The financial year under review was marked by a constrained business environment due to the management transition. Despite a decrease in total income to Rs. 45.274 million from Rs. 54.739 million the previous year, the Modaraba achieved a significant reduction in operating expenses, which fell to Rs. 7.794 million from Rs. 12.851 million. Consequently, the operating profit remained largely stable at Rs. 25.020 million compared to Rs. 25.809 million in the prior year, demonstrating effective cost-control measures.
According to information available from the Pakistan Stock Exchange (PSX), the benchmark KSE-100 Index saw a substantial rise of approximately 44%, from 125,627 points at the end of the previous financial year to around 180,302 points by June 30, 2026. This growth, classified as a very large or significant move, was driven by improved macroeconomic indicators and investor confidence, despite market volatility in the latter half of the year.
As of June 30, 2026, the Modaraba's total assets witnessed a 3.74% increase to Rs. 280.231 million, while equity strengthened by 6.91% to Rs. 257.044 million. The Modaraba's commitment to maintaining liquidity was evident in stable cash and bank balances of Rs. 183.860 million.
The new Board of Directors comprises five members, including Mr. Muhammad Muntaha Asharf as Chairman and Mr. Muhammad Ilyas as CEO/Executive Director. The Audit and HR&R Committees have also been reconstituted, emphasizing the Modaraba's dedication to robust corporate governance.
The broader economic landscape in Pakistan showed signs of recovery, with real GDP growth revised to 3.65% for the year, according to the Pakistan Economic Survey 2025-26. However, the economy faced challenges such as inflationary pressures and a widening trade deficit, underscoring the need for continued structural reforms.
First IBL Modaraba remains committed to social and environmental responsibility, focusing on sustainability, ethical practices, and community engagement. The Modaraba's forward-looking strategy includes maintaining strong corporate governance and fostering an inclusive workplace environment.