Lahore: First Punjab Modaraba, managed by Punjab Modaraba Services (Private) Limited, has reported a notable financial setback in its quarterly financial statements for the period ending March 31, 2025. The Board of Directors presented the report amidst challenges such as fiscal consolidation, monetary tightening, geopolitical tensions, and reduced consumer purchasing power, which have collectively impacted its financial performance.

The management acknowledged a significant after-tax loss of Rs. 62.96 million, contrasting sharply with an after-tax profit of Rs. 3.03 million recorded during the same period in the previous year. This downturn is attributed to high financial costs and the implementation impact of IFRS 9, a financial reporting standard. Despite the unfavorable financial results, the management highlighted a reduction in administrative expenses by 9.2%, achieved through prudent management and effective internal controls.

First Punjab Modaraba aims to focus on repricing existing funding arrangements, diversifying its business model, and hiring quality human resources. The management emphasizes the importance of rigorous assessment of borrowers’ credit profiles and repayment capacities to maintain prudent risk management. Continuous monitoring and oversight remain critical to managing risk exposures within acceptable limits.

The Board expressed its gratitude to regulatory bodies, including the Securities and Exchange Commission of Pakistan, the Registrar Modaraba, the State Bank of Pakistan, and the NBFCs & Modaraba Association of Pakistan, for their ongoing support and guidance. According to information available from the Pakistan Stock Exchange (PSX), these collaborative efforts are pivotal to navigating the current economic landscape.

Acknowledgment was extended to the certificate holders and customers for their trust and confidence in the organization. The Board also commended the management and staff for their dedication, commitment, and hard work in driving the organization forward despite prevailing challenges.