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Pakistan Credit Rating Agency Limited (PACRA) has maintained the long-term and short-term entity ratings of Pak Libya Holding Company (Private) Limited [PLHC] at AA- (Double A minus) and A1+ (A one plus) respectively.
The ratings of Pak Libya reflect organic growth of the company and minimum capital requirement gap gradually being abridged. Benefiting from the increasing credit off take in the country, lending side of Pak Libya picked up pace along with sustaining the quality. Treasury operations continue to strengthen the financial position of the company. Investment in government securities dominates the book with limited exposure in equity market through investments in diversified blue chip stocks. The management continues to cautiously expand its existing loan book through corporate finance activities and further penetrating in SME segment. The management expects to capitalize on new avenues led by economic activities.
The Company enjoys sovereign parentage -jointly owned by Governments of Pakistan and Libya. PACRA reviewed the results of financial year 2017, recognized the management efforts towards improvement and growth of quality asset portfolio and gradual enhancement of core capital through internal sources.
The company has maintained its profitability and long term growth under the present management since FY-2013 and there is significant progress in profitability, asset quality, recoveries, liquidity and shareholders’ equity despite challenging situation and shortfall in Minimum Capital Requirement (MCR) of the company. During the period of last five years, the company has booked a cumulative profit before tax and after tax of Rs 2.103 billion and Rs 1.558 billion respectively. Moreover, the Company has paid Rs 543 million taxes to the Federal Government and there is not a single default against loan & advances approved and disbursed during last five years. The management also vigilant on latest CPEC related business opportunities with a view to contribute in the economic development of Pakistan