Karachi: On October 28, 2026, the Board of Directors of National Bank Modaraba Management Company Limited (NBMMCL), the managing entity of First National Bank Modaraba (FNBM), released its quarterly report for the period ending September 30, 2026. The report outlines the challenges faced by the Modaraba in Pakistan's slowly stabilizing macroeconomic environment.

The ongoing geopolitical conflicts in the Middle East have contributed to volatility in international oil prices, resulting in elevated freight costs and supply chain disruptions. These external factors, together with domestic price stability measures and structural fiscal challenges, continue to impact Pakistan's economic recovery and the Modaraba's operations.

In the first quarter, FNBM concentrated on recovering outstanding amounts from its classified portfolio, achieving recoveries of Rs. 2.23 million. Profit from investments amounted to Rs. 8.80 million, forming the bulk of the total operating income of Rs. 9.65 million. Despite efforts to manage expenses, total expenditure reached Rs. 11.01 million, including finance costs of Rs. 6.78 million. Consequently, the Modaraba reported a loss before tax of Rs. 1.35 million for the quarter.

According to information available from the Pakistan Stock Exchange (PSX), the Modaraba's financial results reflect a moderate move in its financial performance. The Modaraba's Board has submitted a revival and restructuring business plan to the National Bank of Pakistan (NBP) for review. This plan aims to restore financial viability and operational sustainability, pending necessary approvals and compliance.

While a winding-up petition is currently pending, the management is actively engaging with stakeholders to address the issue in line with legal and regulatory requirements. The Board expressed gratitude to certificate holders, clients, and regulatory bodies for their support and acknowledged the efforts of the management and staff in navigating the challenging economic landscape.