Lahore: The Board of Directors of Punjab Modaraba Services (Private) management company of First Punjab Modaraba convened on June 8, 2026, to review and approve the financial accounts for the period ending December 31, 2025. The meeting, held at their office on Egerton Road, Lahore, highlighted a series of financial challenges impacting the modaraba's performance.
The financial statements revealed a net loss of Rs. 172,918,281 for the year ending December 31, 2025, a notable increase from the previous year's loss of Rs. 94,366,606. This represents a very large or significant move in losses. The comprehensive loss for the year stood at Rs. 172,606,106, compared to Rs. 94,164,903 in 2024.
The statement of financial position indicated a reduction in total assets to Rs. 1.739 billion, down from Rs. 1.976 billion in the prior year. Non-current assets decreased slightly, with a notable decline in fixed assets under ijarah arrangement to Rs. 154.06 million from Rs. 185.23 million.
Current assets saw a considerable drop to Rs. 765.76 million from Rs. 993.35 million. This decrease was driven by reductions in short-term investment under murabahah arrangement and ijarah rentals receivable. Cash and bank balances, however, showed a substantial increase to Rs. 81.46 million from Rs. 23.08 million, marking a big move.
Equity and liabilities reflected a marked change, with certificate holders' equity significantly increasing to Rs. 1.535 billion from Rs. 208.00 million, primarily due to subordinated funds rising to Rs. 2.00 billion from Rs. 500.00 million. Non-current liabilities saw a sharp reduction, largely attributed to the absence of redeemable capital, which stood at Rs. 1.485 billion in the previous year.
According to information available from the Pakistan Stock Exchange (PSX), First Punjab Modaraba did not declare any cash dividend, bonus certificates, or right certificates for the period, maintaining a status of nil in all these categories. The financial results were transmitted through the Pakistan Stock Exchange's PUCARS system separately, as specified.
Income from operations decreased to Rs. 211.30 million from Rs. 278.95 million. Income from ijarah rentals dropped significantly, contributing to the overall decline. Profit on diminishing musharakah financing also exhibited a decline. Other income fell dramatically to Rs. 40.21 million from Rs. 125.70 million.
Expenses were reduced to Rs. 405.83 million from Rs. 469.07 million, with a significant decrease in finance costs to Rs. 309.33 million from Rs. 370.61 million. Administrative and general expenses remained relatively steady.
The modaraba management company did not charge any management fees, and the levy/final taxation decreased to Rs. 3.68 million from Rs. 5.37 million. The loss before income tax reflected a significant increase, marking a very large or significant move.
First Punjab Modaraba's financial results underscore the challenging environment faced by the company, with marked reductions in key income streams and an overall increase in net losses. The management's decisions and strategic adjustments in the coming periods will be crucial in navigating the financial landscape.