Agahe Pakistan (“The Institution”) was incorporated with the Securities and Exchange Commission of Pakistan on January 22, 2016, under Section 42 of the repealed Companies Ordinance, 1984. The Institution is licensed to carry out Investment Finance Services as an NBFC under Rule 5 of the Non-Banking Finance Companies Rules, 2003.

The Institution has sprung from AGAHE Society, which was established in 2010. Following Regulatory Compulsion to register Microfinance activities under NBFC License, the Society named “Association for Gender Awareness and Human Empowerment” (AGAHE) spun-off its microfinance operations and transferred its assets, liabilities and equity relating to microfinance operations to Agahe Pakistan on the basis of master agreement with Agahe Pakistan – A Non-Bank Microfinance Company registered u/s 42 of the Companies Act, 2017.

The Institution operates in 14 districts of Province of Punjab including Vehari, Bahawalpur, Bahawalnagar, Rajanpur, Muzaffargarh, Multan, Rajanpur, Layyah, Raheem Yar Khan, Khanewal, Pakpattan, Okara, Sahiwal, Lahore and Kasur. The Institution has diversified product base comprises of General Business, Livestock, Micro-Enterprise, Solar, Auto, Educational, Interest free loans, Islamic Financing, and House Loans. The Institution's portfolio is diversified across various sectors, majorly concentrated in Agri & Livestock, Trade and Services accounting for 27.64%, 29.1% and 42%.55 of the total GLP, respectively.

Agahe Pakistan is a public unlisted Institution limited by Guarantee not having a share capital. The control of the Institution currently vests with 7 members. Members do not have any shareholding in the Institution but have provided a guarantee of a certain amount as required in the regulations.

All members of the Board bring substantial professional experience and possess in-depth knowledge relevant to the microfinance and development finance sectors. Their diverse expertise contributes meaningfully to strategic decision-making, governance oversight, and the overall growth and sustainability of the Institution.

The Board comprises highly experienced professionals equipped with the necessary skills and strategic insight to effectively guide the Institution's direction. Dr. Abid Aman Barki, the Chairman, is an expert in economic affairs, bringing over 43 years of extensive industry experience across various leadership roles. His deep understanding of the sector significantly contributes to the Institution’s strategic vision and governance.

The likelihood of the Institution receiving financial support from its members is limited, given its registration as a not-for-profit organization under section 42 of the Companies Ordinance 1984 (now Companies Act, 2017). This status restricts the Institution's ability to solicit direct financial contributions from members. However, the Institution 's robust financial management practices, diversified revenue streams, and strategic approach have reinforced its financial stability.

The overall governance of the Institution rests with a seven-member highly qualified and experience Board of Directors (BOD), which includes three independent directors and ensures gender diversity through female representation. The board is supported by three specialized sub-committees: (i) Audit Committee, (ii) Human Resource Committee, and (iii) Risk Management Committee, which provide focused oversight and expert guidance in their respective domains. Meeting attendance has been satisfactory, demonstrating the members' commitment. Additionally, the minutes are thoroughly documented, ensuring transparency and accountability in all board activities.

The Board members of the Institution bring a wealth of experience across diverse sectors, contributing to strong governance and strategic oversight. The Chairman, Dr. Abid Aman Barki, has an extensive 43-year career and actively serves on several high-level government committees and task forces, further enhancing the Board’s depth of expertise and policy insight.

The presence of three independent directors enhances the Board's ability to provide objective oversight and informed analysis of strategic decisions, thereby strengthening the Institution's overall governance framework. During FY24, multiple Board meetings were convened to ensure active engagement in key policy and operational matters.

Ilyas Saeed & Co., Chartered Accountants ( SBP A- Category firm), serve as the External Auditors of the Institution. For FY24, they issued an unqualified opinion on the financial statements, affirming the accuracy and reliability of the Institution 's financial reporting. An Internal Audit Department is in place, which reports directly to the Audit Committee, further strengthens the Institution 's commitment to transparency and accountability. Additionally, a dedicated Risk and Compliance Department ensures adherence to regulatory requirements and internal policies and reports to Board Risk Management Committee.

The Institution’s operations are structured across seven key departments: (i) Institutional Development, (ii) Operations, (iii) Accounts & Finance, (iv) Risk & Compliance, (v) Internal Audit, (vi) Administration, and (vii) Information Technology. Each department is led by a seasoned professional who reports directly to the Chief Executive Officer (CEO). In alignment with best governance practices, the Head of Internal Audit and Head Of Risk & Compliance maintains functional independence by reporting directly to the Board Audit and Risk Committees.

The senior management team brings extensive experience and deep expertise to the sector. The Chairperson, Dr. Abid Aman Burki, a renowned economist, serves as Professor of Economics at LUMS University, Lahore. The CEO, Mr. Barak Ullah, has nearly two decades of experience in the field. The CFO, Mr. Muhammad Khalid, ACA, a seasoned Chartered Accountant and Associate Member of ICAP, has been with Agahe Pakistan since 2018, with over 13 years of diverse experience. This accomplished leadership is backed by a team of skilled professionals, ensuring strong management and operational excellence.

The Institution has established various formal management committees for overseeing critical operational areas, performance monitoring and ensuring adherence to policies and procedures. Each department head is responsible for ensuring the smooth functioning of their respective departments and reports directly to the Chief Executive Officer on pertinent matters.

The Institution is currently undergoing a transformation phase, which includes the digitalization of core processes, the implementation of an advanced Management Information System (MIS).

The Institution has adopted a robust risk management framework to effectively address operational, liquidity, and credit risks. Its loan approval process is fully digitized and decentralized, facilitating efficient decision-making.

Agahe Pakistan currently utilizes an advanced Loan Management System developed by Munsalik Digital Pvt. Ltd., a subsidiary of PMN. The Institution has been continuously investing in its technological infrastructure to boost automation and efficiency across departments, addressing a vital need in the evolving microfinance sector.

Pakistan’s economy has previously contended with significant macroeconomic headwinds; however, signs of stabilization have emerged in the first half of FY25. This period has been characterized by a gradual reduction in policy rates and a notable decline in inflation, creating a more favorable environment for economic activity. These positive developments are expected to offer crucial support to several sectors, including microfinance. As of the latest data, the total Gross Loan Portfolio (GLP) of the microfinance sector stands at approximately ~PKR 598bln, comprising contributions from Microfinance Banks (MFBs), Microfinance Institutions (MFIs), and Rural Support Programs (RSPs). MFIs and RSPs collectively account for around ~23% of the total GLP. In calendar year 2024 (CY24), the number of active borrowers under MFIs and RSPs recorded a modest growth of approximately ~1.17%. Concurrently, the average loan size increased to ~PKR 44,762, up from ~PKR 38,777 in CY23. Portfolio quality also demonstrated improvement, with the infection ratio declining to ~1.57% in CY24, compared to ~2.80% in the previous year.

Agahe Pakistan entered the microfinance sector in 2016, operating across 14 districts in province of Punjab with a network of 44 branches. As of 9MFY25, the Institution’s Gross Loan Portfolio (GLP) reached ~PKR 2.37bln, reflecting continued growth. It held a ~0.4% market share in terms of GLP as of end-June 2024, when the portfolio stood at ~PKR 1.95bln, compared to ~PKR 1.65bln at end-June 2023.

The Institution recorded an interest income of approximately PKR 894.19 million in FY24, a significant rise from PKR 619.16 million in FY23, driven primarily by higher returns on loans and investments. For the first nine months of FY25, as of March 2025, the Institution recorded an interest income of PKR 811.74 million, largely due to markup earned on advances, totaling about PKR 740.74 million.

Agahe Pakistan reported a profit after tax of ~PKR 174mln during 9MFY25, surpassing the full-year profit of ~PKR 145mln in FY24 and significantly higher than ~PKR 67mln in FY23. Profit before provisioning also increased to ~PKR 197mln in 9MFY25, compared to ~PKR 150mln in FY24 and ~PKR 75mln in FY23, indicating sustained growth in core earnings.

The Institution remains committed to advancing financial inclusion, with a strategic focus on underserved rural communities in Punjab. Concurrently, efforts are underway to diversify funding sources through the development of new partnerships and the exploration of alternative financial channels, aimed at strengthening long-term sustainability and operational resilience.

As of 9MFY25, the Gross Loan Portfolio (GLP) stood at ~PKR 2.37bln, reflecting a growth of ~21.4% compared to FY24. Non-Performing Loans (NPLs) saw a slight increase, reaching ~PKR 31mln in 9MFY25, up from ~PKR 20mln in FY24, and ~PKR 34mln in FY23. Despite this modest increase, asset quality remains stable, underpinned by appropriate provisioning and consistent portfolio quality indicators.

Institution does not maintain an investment portfolio, effectively minimizing its exposure to market risks associated with fluctuations in investment returns or changes in valuations.

The Institution has diverse borrowing avenues, including the Pakistan Microfinance Investment Company (PMIC), State Bank of Pakistan (SBP), National Bank of Pakistan (NBP), Habib Bank Limited (HBL), The Bank of Punjab (BOP), and JS Bank, which strengthens its funding base. Borrowings increased to ~PKR 2.16bln by 9MFY25, up from ~PKR 1.66bln in FY24 and PKR 1.43bln in FY23, marking a ~14.2% growth in FY24 and further expansion during the current year.

Agahe Pakistan maintains a sound liquidity position, with cash and cash equivalents of PKR 615.77mln in 9MFY25. The current ratio was 2.8x in FY23, slightly down from 3.1x in FY22, indicating adequate short-term financial coverages.

As an NBFI under SECP regulation, Agahe Pakistan is not subject to CAR requirements. However, total reserves and funds increased to ~PKR 1.11bln by 9MFY25, up from ~PKR 932mln in FY24 and ~PKR 807mln in FY23. The equity-to-assets ratio stood at ~32.0% in 9MFY25, showing a gradual decline from ~33.2% in FY24 and ~34.4% in FY23, yet remaining healthy and well-aligned with risk exposure.