Lahore: Gharibwal Cement Limited (GCL) is set to convert an existing short-term loan into a long-term facility for its associated company, Balochistan Glass Limited, aiming to bolster financial stability and support ongoing operational needs. The decision, pending shareholder approval, involves the conversion of Rs. 583.33 million, earmarked to fortify Balochistan Glass’s financial footing over a span of three years.

The conversion aligns with strategic financial management practices, featuring a markup rate of KIBOR plus 3.5%, payable bi-annually, with the principal repayment scheduled over ten quarterly installments concluding by June 30, 2027. According to information available from the Pakistan Stock Exchange (PSX), this financial maneuver is part of a broader agenda to ensure sustained growth and operational continuity for GCL’s associate, amidst evolving market challenges.

This fiscal strategy was detailed in GCL’s latest annual report, indicating a concerted effort to transition short-term high-impact loans to more manageable long-term commitments. The move is expected to provide Balochistan Glass with the necessary leeway to navigate its financial restructuring, ensuring stability as it aims for recovery and profitability in a competitive industry.