National Rural Support Programme ('NRSP' or 'the Company'), registered as a non-profit organization est. on 02-Nov-91, operates as a public company limited by guarantee not having share capital in Pakistan, under the provision of section 42 of the then applicable Companies Ordinance, 1984 (repealed by the Companies Act, 2017).

NRSP is Pakistan's leading microfinance and development organization. Initially, the Govt. of Pakistan (GoP) provided the seed capital of PKR 500mln to empower rural communities so as to combat poverty through various initiatives and dedicated staff.

NRSP is licensed as an Investment Finance Service provider under Non-Banking Microfinance Companies (NBMFC) to develop, train and micro lend along with infrastructure development. Operating in 72 districts across Pakistan, including Azad Jammu and Kashmir, NRSP is engaged with over 3.8mln households and 246,906 community organizations.

NRSP is limited by the guarantee of a 16-member body consisting of 10 Board members and 6 general body members.

NRSP members body is selected based on expertise. The BoD serves for three years, while the members have no fixed tenure unless they voluntarily resign. However, stability remains eveident.

The members, comprising retired civil service professionals, educationists, and development experts, possess extensive experience in the field of development and demonstrate a robust business acumen.

NRSP operates under a unique structure that differs from traditional companies, where the conventional concept of sponsors' willingness and ability to support the Company in times of need does not apply. Since the members of NRSP do not derive any financial benefits from the organization's surplus profitability, their willingness to provide financial support during challenging times is not relevant or may be limited. 

NRSP's governing body includes ten Board of Directors, three Ex-Officio Directors, and three Independent Directors, offering diverse expertise.

Mr. Shoaib Sultan Khan's, the Chairman, pioneering initiatives include: Aga Khan Rural Support Programme, along with contributing in development programs for Pakistan, India, and South Asia. Ms. Kishwar Naheed, a publicist, columnist, media person, and a creative writer, is on the Board of NRSP. She is also the coordinator of Hawwa Crafts Associates, a recipient of Sitara-e-Imtiaz in 2000, and nominated among 1000 women for the Nobel Peace Prize in 2005. 

NRSP has established the Audit Committee and the Risk Management & Finance Committee to strengthen governance and oversight. Effective oversight is ensured through quarterly BoD meetings. Proper documentation of meeting minutes are maintained.

The external auditor, M/s A.F. Ferguson & Co., issued an unqualified opinion on the FY24 financial statements.

NRSP has implemented a hierarchical organizational structure to manage operations and ensure proper segregation of responsibilities. All departmental Heads (Finance, Grant Management, Operations and Programme Development) reports to the CEO, who then reports to the BoD.  

Dr. Rashid Bajwa, the CEO, has over 3 decades of experience in poverty alleviation and development. Mr. Asad Mahmood, the CFO, holds an overall professional experience of more than two decades. They are supported by an experienced team.

To monitor management performance, NRSP has established six management committees. Regular management committee meetings are held to address challenges, mobilize resources, assess projects, plan for the future, manage reinsurance and claims, and discuss financial and non-financial matters.

NRSP uses Mango ERP, a specialized solution for microfinance institutions, to automate and streamline key processes like loan management and client servicing.

NRSP has a robust credit risk control framework in place to effectively manage and mitigate credit risks. It adopts a proactive approach through comprehensive policies and procedures.

NRSP prioritizes technological advancements to improve efficiency and automation, ensuring faster loan recovery, robust surveillance, and effective risk management in the microfinance industry.

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 ~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 CY24, the number of active borrowers under MFIs and RSPs recorded a modest growth of ~1.17%. Concurrently, the average loan size increased to ~PKR 44,762 in CY24 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 CY23. 

NRSP holds a market share of ~6.2% in terms of GLP of the whole microfinance industry. NRSP is the second largest service provider in terms of active borrowers.

NRSP’s total income is derived from net markup income (~42%) and non-markup income (~58%). Net markup income is calculated as markup income less markup expense. Markup income is primarily generated from advances (~90%), with the remaining (~10%) attributed to income from investments in debt instruments, subsidiaries/associates, and other earning assets. While markup expenses are primarily incurred on deposits and borrowings. Non-markup income is supported by grant income (~90%), while ~10% comprises fee and commission, dividends, and gains/losses on investments. During FY24, NRSP's total income rose by ~45%, reaching PKR 14.1bln (FY23: PKR 9.8bln). This growth was driven by a ~26% increase in net markup income (FY24: PKR 5.9bln, FY23: PKR 4.7bln) and a ~60% surge in non-markup income (FY24: PKR 8.2bln, FY23: PKR 5.1bln). The rise in net markup income was primarily fueled by an increase in markup earned on advances (FY24: PKR 8bln, FY23: PKR 6.5bln), supported by the expansion of the microcredit portfolio (FY24: PKR 23.9bln, FY23: PKR 21.4bln), amid improved demand resulting from a declining interest rates. This, combined with higher income from investments in debt instruments and associates/subsidiaries, further benefited NRSP. Markup expenses recorded a relatively modest increase of ~21%. The growth in non-markup income was largely attributable to a significant increase in grants (FY24: PKR 8.2bln, FY23: PKR 4.9bln). Similarly, during 9MFY25, total income grew by ~4%, primarily backed by ~35% growth in net markup income; while non-markup income declined by ~19% due to lower grants received.  Considering the low interest rates, the revenue trend is expected to follow an inclining trend going forward.

During FY24, NRSP posted ~57% growth in the profit after tax and stood at PKR 2.2bln (FY23: PKR 1.4bln). Despite ~45% growth in non-markup expense in FY24, NRSP has managed to reduce the provisions and write-off by 29%. Moreover, the portfolio yield has gone up to ~146% from ~126%. The operational self-sufficiency ratio remains at a considerable level (FY24: 61%, FY23: 69%). Similarly, during 9MFY25, PAT closed with an uptick of ~64% and closed at PKR 2.3bln (9MFY24: PKR 1.4bln). The portfolio yield and operational self-sufficiency ratio's remains substantial. Going forward, NRSP is expected to post healthy profitability.  

NRSP remains committed to advancing financial inclusion, with a strategic focus on underserved rural communities. 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.

NRSP demonstrates a strong credit risk profile, evident from its infection ratio of ~2.4% as at FY24, showcasing stability (FY23: ~2.5%). NRSP's non-performing finances to equity ratio also posted stability (FY24: ~3.6%, FY23: ~3.9%). Similarly, in 9MFY25, the infection remain stable at ~2.4%. The non-performing finances to equity ratio showcased stability at ~4% (9MFY24: 3.9%). Going forward, NRSP's credit risk is expected to remain minimal.

NRSP is not exposed to market risk as its investment portfolio is exclusively focused on TDRs, saving accounts, and investment properties, with no investments made in equity markets.

NRSP relies on financial institution borrowings to fund its microcredit operations. As of FY24, total borrowings grew by ~20% to PKR 18bln from PKR 15bln in FY23, in line with the increased demand during low interest rates. As of 9MFY25, borrowings further increased to PKR 25bln (9MFY25: PKR 15bln). The trend is expected to remain the same, going forward.

As of FY24, NRSP's Total Finances + Non-Performing Finances/Total Asset ratio remain stable to ~61.8% from ~61.6 in FY23, due to a improvement in performing finances. In 9MFY25, the ratio reduced to ~64% from ~67% in 9MFY24 due to increase in non-performing finances. The Total Finances + Non-Performing Finances/Borrowing ratio reduced to ~127.7% in FY24 compared to ~138.9% in FY23 due to increase in borrowings. As of 9MFY25, the ratio reduced to 118.7% from 148.9% in 9MFY24. However, the coverages remain strong. Going forward, the trend is expected to remain the same.

As at FY24, NRSP equity base reflected an uptake of ~14% reporting at PKR 15.8bln (FY23: PKR 13.7bln). As at 9MFY25, the equity base posted further increase to PKR 18bln (9MFY24: 15bln). Thr growth was backed by significant increase in profit accumulation. Total Equity to Total Assets ratio reported at ~42% in FY24 (FY23: ~40.3%) and ~ 39.3% in 9MFY25 (9MFY24: ~44.3%. NRSP reported a ROE of ~58.7% in FY24 and 17.8% in 9MFY25. Capital adequacy is expected to follow the same trend, going forward.