Karachi: The Board of Directors of Paramount Investments Limited presented the financial statements for First Paramount Modaraba, revealing a decline in profitability for the nine-month period ending March 31, 2026. The Modaraba reported a profit before tax of Rs. 14,946,420, down from Rs. 21,400,918 during the same period last year. Profit after tax also decreased, standing at Rs. 10,611,958 compared to Rs. 15,194,652, marking a reduction of Rs. 4,582,694. Earnings per certificate fell to Rs. 0.77 from Rs. 1.10.

The report attributed the decline in profitability primarily to subdued activity in the oil and gas exploration sector, which negatively impacted the Modaraba’s business venture, FPM Petro Services. This downturn, considered temporary, was driven by lower exploration and field activity. The Board remains optimistic about a recovery as sector activity normalizes.

According to information available from the Pakistan Stock Exchange (PSX), the Modaraba’s financing portfolio showed growth, primarily due to increased Murabaha financing, reinforcing the earning asset base and stabilizing recurring income streams. The Modaraba continued its expansion into emerging and technology-driven business segments, with initiatives at development or early growth stages expected to boost earnings by late this year or early next year.

In technological advancements, FPM AML Check enhanced its compliance capabilities and expanded its client base, establishing a presence in international markets. The Modaraba’s blockchain-based asset fractionalization platform, developed with partners, is under regulatory review for commercial operations.

Regulatory compliance remains a priority, with revised Modaraba Regulations issued on August 15, 2022, by SECP requiring a minimum equity of Rs. 500 million and a credit rating of “A-“. With FPM’s equity at Rs. 285 million and a rating of BBB, the timeline for compliance has been extended to August 14, 2026. The Modaraba is actively working to meet the requirements and remains confident in achieving them within the extended timeframe.

No dividend was declared for the period ended March 31, 2026, in line with the regulations. The Board acknowledged the support from the Registrar Modaraba, SECP, and praised the staff for their dedication and commitment.