Lahore: First Punjab Modaraba reported its financial and operational outcomes for the fiscal year ending on December 31, 2024, in a comprehensive Chairman's Review, detailing significant milestones and strategic adjustments. The review highlighted the impact of the State Bank of Pakistan's monetary policy changes and the adoption of new financial reporting standards.

The State Bank of Pakistan initiated a gradual reduction in its policy rate from June 2024, resulting in a range of 13% to 15% by year-end, down from 22% at the end of 2023. This monetary policy shift is anticipated to influence the downward repricing of the modaraba's funding arrangements.

First Punjab Modaraba achieved a major milestone with the successful implementation of International Financial Reporting Standard - 9 (IFRS - 9). This adoption is expected to enhance transparency and accuracy in financial reporting, particularly in credit risk assessment and provisioning. Additionally, the modaraba demonstrated progress in recovering non-performing loans, underscoring a commitment to asset quality and risk management.

The board of directors underwent a thorough performance evaluation throughout the fiscal year, with the results deemed satisfactory. This assessment covered strategic alignment, active participation in planning, and oversight of business operations. The board continues to fulfill its responsibilities in accordance with the Modaraba Ordinance, Companies Act, and Corporate Governance Regulations.

Looking forward, the board is focused on exploring niche avenues to enhance its role compared to other modaraba companies, emphasizing revenue streams from services rather than expanding its financing book. The board remains committed to navigating future challenges and capitalizing on opportunities for sustainability.

According to information available from the Pakistan Stock Exchange (PSX), strategic planning and risk management remain central to First Punjab Modaraba's operations. The board's engagement and contributions continue to guide the modaraba's strategic direction.

The chairman expressed gratitude to the parent company, The Bank of Punjab, valued customers, and stakeholders for their support. Acknowledgment was also extended to the Registrar Modaraba for guidance, and to each board member for their dedication to upholding the modaraba's vision and values.