PACRA Assigns Initial Entity Ratings to National Rural Support Programme

The assigned rating reflects NRSP's significant contributions to poverty reduction, rural empowerment, and inclusive growth objective in Pakistan. With a robust track record of implementing impactful social development projects and fostering financial inclusion, NRSP has established itself as a trusted and reliable partner in the rural development space. The Rating also acknowledges the organization's strong governance and presence of federal secretaries on the board. The strength of NRSP's governance structure lies in its esteemed body of members and board of directors, comprising reputable individuals. Their expertise and reputation contribute to the robustness of the organization's governance framework. NRSP's continued enhancement in business volumes, good management practices, and asset quality further strengthen its business profile in the rapidly growing microfinance sector. Supported by prudent financial management, diversified funding sources, and effective risk management systems, NRSP maintains a strong financial position. The rating also takes into account NRSP's extensive geographic presence in 72 districts across all four provinces of Pakistan, including Azad Jammu and Kashmir. This wide reach enhances NRSP's ability to effectively serve diverse communities and implement impactful initiatives. The organization is supported by a strong force of field officers, further strengthening its operational capabilities. As at FY22, NRSP's equity stood at PKR 12,233mln, and the organization reported a profit after tax of PKR 1,316mln. Furthermore, NRSP's micro lending portfolio reached PKR 21,440mln.
The ratings are contingent on NRSP’s ability to maintain its asset quality and sustain growth in business volumes. The impact of technological advancements on the NRSP’s operational efficiency, performance of its investment book and risk management remain essential factors. The sustainability of improved margins will be crucial going forward.

About the Entity
NRSP, established on November 2, 1991, is a registered not-for-profit organization in Pakistan under Section 42 of the Companies Act 2017. As a Public Company Limited by guarantee, it operates as a Large-Sized Company (LSC) focused on sustainable development. With a license to provide Investment Finance Services under NBMFC, NRSP employs a diverse range of programmatic tools. Its 16-member team includes 10 board members and 6 members in the general body, led by Chairman Mr. Shoaib Sultan Khan, a renowned advocate of community-driven development. Dr. Rashid Bajwa, CEO, brings over 30 years of experience in poverty alleviation and development, with expertise in civil service and policy planning.