Karachi: The Board of Directors of Habib Rice Products Ltd. has approved a strategic financial move designed to bolster the company’s working capital requirements, according to a disclosure made on July 14, 2026. The board, in a meeting held the same day, endorsed the procurement of an unsecured loan amounting to $500,000. This decision aligns with the compliance of Section 96 and 131 of the Securities Act, 2015, and Clause 5.6.1(a) of the Regulations of Pakistan Stock Exchange Limited.

The loan will be provided by the company’s sponsor shareholder, Mr. Gaffar A. Habib. It is set to be disbursed in Pakistani Rupees, based on the US$/PKR exchange rate effective at the time of disbursement. This financial arrangement is structured to be interest-free and will be repayable at the lender’s request. Repayment will occur with mutual consent and is contingent upon the company’s assessment of its cash flow availability at the time of repayment, also in equivalent Pakistani Rupees as per the prevailing exchange rate.

The decision to secure this loan is projected to enhance Habib Rice Products Ltd.’s liquidity position, thereby supporting its operational financial needs. According to information available from the Pakistan Stock Exchange (PSX), such corporate financial maneuvers are pivotal for companies aiming to stabilize and optimize their capital structure.

By acquiring this interest-free loan, Habib Rice Products Ltd. aims to strategically navigate the challenges of liquidity management while maintaining alignment with regulatory standards. This financial decision underscores the company’s commitment to sustaining robust operational capabilities amidst fluctuating economic conditions.