Karachi: Parwaaz Financial Services Limited (PFSL), a subsidiary of Karandaaz Pakistan, has announced its financial results for the half year ending June 30, 2026, revealing a significant increase in net profit while experiencing a decline in total income. The company reported a net profit of Rs. 48 million, a big move from Rs. 4 million in the same period last year, according to the Directors' Report released on August 28, 2026.

PFSL's strategic focus on enhancing asset quality and effective credit risk management has contributed to this profit surge. The company's gross financing portfolio saw a reduction to Rs. 3,487 million from Rs. 4,097 million at the end of December 2025, highlighting its shift towards maintaining a high-quality financing portfolio.

According to information available from the Pakistan Stock Exchange (PSX), the company's total income decreased to Rs. 329 million from Rs. 433 million in the prior year. This reflects PFSL's deliberate strategy to prioritize higher-yield assets and improved portfolio quality over volume. Despite the decline in total income, the profitability was bolstered by a net impairment reversal of Rs. 62 million, contrasting with a charge of Rs. 19 million in the previous year.

The financial report also underscores the company's commitment to promoting financial inclusion across Pakistan's small and medium enterprises (SMEs), with a strategic emphasis on sectors such as agriculture, industrial value chains, renewable energy, healthcare, education, and digital lending.

Amidst these developments, Pakistan's economy recorded an estimated growth of 3.7% during FY2026. While inflationary pressures resurfaced due to geopolitical tensions increasing global oil prices, the State Bank of Pakistan responded with a 100 basis points hike in the policy rate to 11.5% in April 2026.

PFSL's future outlook remains optimistic, with plans to continue its digital lending expansion and focus on sustainable growth through prudent risk management and disciplined treasury operations. The company's robust risk management framework and adherence to high corporate governance standards are expected to support its strategic objectives moving forward.