Infra Zamin Pakistan ("IZP" or the "Company"), a for-profit credit enhancement facility company, was incorporated on 30th March 2020 as a non-bank financial company (“NBFC”) domiciled in Pakistan. The license was issued on 19th February 2021.

The credit enhancement facility was established to 'crowd-in' private-sector capital to boost infrastructure investments and contribute to the modernization of Pakistan's financial architecture. The core objective behind setting up IZP is to encourage enhanced financial participation in long-term local currency financings of infrastructure assets, shifting the market reliance away from the volatility of short-term commercial bank credit. By acting as a bridge between high-quality projects and conservative institutional capital, IZP facilitates the transition of infrastructure funding from a niche bank activity to a mainstream capital market asset class.

IZP's sole line of business is to issue PKR-denominated unconditional and irrevocable credit guarantees to credit-enhance long-term local currency debt. This ensures the timely payment of both interest and principal for senior ranking debt instruments backed by infrastructure-related projects such as digital transmission, renewable energy, and social infrastructure. By leveraging the technical expertise of the PIDG, IZP ensures its operational processes—from project selection to monitoring—align with global environmental, social, and governance (ESG) standards, thereby supporting sustainable economic growth and climate resilience.

IZP is jointly owned by Private Infrastructure Development Group (PIDG), through its subsidiary InfraCo Asia Investments via Indus Guarantees (holding 60%), and Karandaaz Pakistan, which holds the remaining 40%. 

The Shareholders have solemnized a Shareholders' Agreement, which determines their relationship among themselves and with the entity. The Shareholders are subject to a lock-in period, which is pivotal to the development of IZP.

The business acumen is considered strong as IZP benefits from robust sponsor engagement, and their experience is expected to play a critical role in the development and stabilization of IZP. Among the key sponsors, Private Infrastructure Development Group is an established multi-donor infrastructure development and finance organization, founded in 2002, that mobilizes private sector investment in infrastructure across developing markets. It works with public and private partners to bridge financing gaps, reduce project risk, and channel capital into sustainable and climate-resilient infrastructure initiatives. PIDG’s involvement spans the entire project lifecycle, contributing technical expertise, financial structuring, and capacity building, thereby supporting economic growth, job creation, and improved access to infrastructure in emerging economies.

PIDG with consolidated strength of eight members is a donor-financed trust. Although no formal commitment exists, the likelihood of support from the sponsors is high in case of need. GuarantCo is to provide a contingent capital facility of up to PKR 8,250mln to IZP.

IZP's Board of Directors (Board) currently consists of seven members, two Indus nominees, including the Chairperson, one Karandaaz nominee, one GuarantCo nominee, two independent directors, and the CEO. The Board has four committees for oversight of responsibilities. These comprise (i) New Business and Credit Committee, (ii) Finance and Audit Committee, (iii) Appointments and Remuneration Committee, and (iv) Governance and Risk Committee.

The Board carries diversified experience, including the financial sector, particularly banking, infrastructure development, and other businesses. Mr. Philip Skinner – Non-Executive Director with ~19 years of experience in development finance and infrastructure investment. He is associated with global execution and guarantee platforms. His expertise lies in development finance, infrastructure, and international investment. Mr. Khoo Boo Hock – Non-Executive Director (Chairman) with ~34 years of experience across credit guarantees, infrastructure finance, and advisory. He has held senior roles in multilateral institutions and rating agencies. His core expertise includes infrastructure finance, risk assessment, and policy advisory. Mr. Navid Yousaf Goraya – Non-Executive Director with ~31 years of experience in investment banking, credit, and corporate finance. He has held leadership roles in global and local financial institutions. His expertise spans investment management, Islamic banking, and corporate finance. Mr. Muneer Kamal – Independent Director with ~38 years of extensive experience in banking and financial services. He has served in top leadership roles including CEO, Chairman, and industry representative bodies. His expertise covers commercial banking, financial markets, and institutional leadership. Ms. Claudine Lim Hise-Yun – Non-Executive Director new addition to the Board with ~37 years of experience in finance, infrastructure, and development initiatives. She is associated with multiple regional infrastructure and energy platforms. Her expertise includes project finance, infrastructure development, and strategic investments. Mr. Tayyeb Afzal – Independent Director with ~56 years of experience in finance, leasing, and corporate management. He has held senior executive roles across diverse financial institutions. His expertise lies in corporate governance, financial services, and industrial sectors.

The Directors shall hold meetings at least once every calendar quarter at the head office of the Company or such other place as the Board may decide.

KPMG Taseer Hadi & Co. have been appointed as the External Auditors of the Company for the year CY25. The auditor is listed in category “A” of the State Bank’s panel of auditors. They have expressed an unqualified opinion on the financial statements of the Company for the year ended 31st December 2025.

IZP is functionally divided into seven main groups, each governed by its respective Chief and all reporting to the CEO.

Ms. Maheen Rehman – Chief Executive Officer with ~24 years of experience in investment management, banking, and capital markets. She has led major asset management firms and held senior roles in research and financial services. Her expertise spans asset management, capital markets, and economic policy. She also serves on the boards of multiple prominent organizations, reflecting strong governance and strategic oversight experience. Mr. Khusro Mumtaz – Chief Risk Officer with ~30 years of experience in banking and risk management. He has held CRO roles at leading institutions including JS Bank, NIB Bank, and Standard Chartered across multiple geographies. His expertise spans credit risk, corporate banking, structured finance, and enterprise risk management. Mr. Amir Masood – Chief Investment Officer with ~25 years of experience in corporate, investment, and commercial banking. He has held senior leadership roles including Country Head at Citibank Pakistan, managing multinational corporate relationships. His expertise includes investment strategy, credit structuring, and financial institutions coverage.

Currently, there are multiple management committees that are looking at all relevant matters about new Business, Risk & Compliance, Marketing, IT/IS & ERP, Finance, HR, HSES/DI and Administration. These committees also deliberate on any other significant issues or matters to be presented to the Board or relevant Board sub-committees.

Comprehensive MIS reports are generated on a prescribed frequency for review by management on regular basis.

IZP manages risk through its Governance and Risk Committee, which is responsible for overseeing the implementation of risk management functions and practices. The Committee ensures that the investment and management of capital resources are carried out in a professional and prudent manner. The experience of GuarantCo provides added comfort in the identification and management of implied credit risk. IZP is adopting a set of pre-defined parameters for managing credit, liquidity, and market risk.

Credit enhancement and guarantee institutions play a pivotal role in strengthening financial intermediation by facilitating access to long-term financing, particularly for infrastructure and underserved segments. These institutions provide credit guarantees that mitigate default risk, thereby improving the credit profile of underlying instruments and enabling broader participation from institutional investors. Operating under regulatory oversight, such entities are required to maintain adequate capitalization and robust risk management frameworks, given the contingent nature of their obligations. In Pakistan, infrastructure financing remains constrained by limited availability of long-tenor funding, heavy reliance on bank-based lending, and an underdeveloped domestic capital market. To address these structural gaps, credit enhancement platforms provide partial risk guarantees, enabling infrastructure-related instruments to achieve stronger credit ratings and attract investors such as pension funds and insurance companies. This mechanism supports diversification of funding sources and promotes local currency debt market development. Alongside InfraZamin Pakistan Limited (IZP), other initiatives also contribute to the evolving credit guarantee ecosystem in the country. The National Credit Guarantee Company Limited (NCGCL), formerly Pakistan Credit Guarantee Company (PCGC), focuses on enhancing access to finance for SMEs and priority sectors through risk-sharing mechanisms. These institutions play a developmental role by encouraging financial inclusion and supporting segments with limited access to formal credit. At a broader level, the Private Infrastructure Development Group, through entities such as GuarantCo, supports infrastructure financing in emerging and frontier markets, including Pakistan, by addressing credit, technical, and market constraints across the project lifecycle. Within this framework, IZP stands out as a dedicated infrastructure-focused credit enhancement facility, leveraging international expertise and local market understanding to catalyze private investment, strengthen capital markets, and support sustainable economic growth in Pakistan. 

IZP’s differentiating factor is conceded from direct engagement with the Investors/Lenders in the debt of underlying transactions, leading to a transfer of knowledge on well-structured infrastructure debt, thus creating greater capacity in the infrastructure markets, a greater impact on domestic government policy given the capital commitment to the country by a local entity.

IZP’s revenue generation is primarily driven by its deal flow, reflecting the size and number of transactions executed over a given period, with a strategic emphasis on maintaining a strong pipeline to sustain fee-based income. The Company commenced operations in CY22 with its first financial guarantee issued under a tripartite arrangement with Multinet Pakistan Pvt. Ltd. and HBL, followed by an additional guarantee extended to Kashf Foundation in CY23. Thereafter, IZP steadily expanded its exposure base, onboarding Sunridge Foods Ltd., Acumen Energy Ltd., and Jaffer Business Systems in CY24. This growth momentum extended into CY25, during which the Company secured additional mandates across diverse sectors, including Infralectric Private Limited, Consumer Electronics – Manufacturing, and a transaction within the Digital Communications and Infrastructure segment. As of 3MCY26, additional mandates remain in the pipeline across infrastructure-related segments, indicating sustained business momentum. Accordingly, guarantee fee income has exhibited a consistent upward trend, increasing to PKR 127.5mln in CY25 (CY24: PKR 75mln; CY23: PKR 26mln), reflecting the expanding scale of operations and rising deal activity. On a broader basis, gross guarantee income stood at PKR 145.4mln (CY24: PKR 85.2mln), driven by higher issuance volumes. Within this, guarantee fees contributed PKR 82.9mln (CY24: PKR 65.9mln), while structuring and mobilisation fees recorded a notable increase to PKR 54.6mln (CY24: PKR 18.1mln). Commitment and monitoring fees remained relatively modest at PKR 4.5mln and PKR 3.4mln, respectively, whereas amortisation of guarantee fee receivables contributed PKR 22.2mln (CY24: PKR 12.4mln), bringing total operational guarantee income to PKR 149.8mln (CY24: PKR 87.1mln), up 71.9% YoY. Overall, the Company maintains a total approved guarantee portfolio of PKR 7.2bln, of which PKR 5.8bln has been issued, indicating a moderate utilization level and significant headroom for future growth. The guarantee structure varies depending on transaction type, with bank financing typically covered up to 75%, whereas capital market instruments such as bonds and sukuks may be guaranteed up to 100% to enhance investor confidence and support market development.YoY.

In CY25, IZP’s total income stood at PKR 760.2mln (CY24: PKR 808.1mln), reflecting a decline of 5.9% YoY, primarily driven by lower investment income despite strong growth in core guarantee operations. Conversely, income from other activities declined by 15.3% YoY to PKR 610.5mln (CY24: PKR 720.9mln), mainly due to the absence of T-bill and dividend income following maturities, while PIB markup remained the key contributor at PKR 349.9mln (CY24: PKR 324.4mln); however, realised gains on mutual funds increased significantly to PKR 114.9mln (CY24: PKR 10.9mln), while unrealised gains stood at PKR 119.8mln (CY24: PKR 137.4mln), alongside lower profit on savings accounts of PKR 10.5mln (CY24: PKR 14mln), grant income of PKR 14.5mln (CY24: PKR 12.6mln), and framework service fee income of PKR 1mln. Total expenses increased sharply to PKR 683.4mln (CY24: PKR 457.2mln), largely driven by an ECL charge of PKR 164.5mln (CY24: reversal of PKR 6 thousand) linked to deterioration in the credit profile of a key obligor associated with the agri-infrastructure sukuk exposure; excluding ECL, operating expenses rose moderately by 13.5% YoY to PKR 518.9mln, with administrative and general expenses increasing to PKR 414.7mln (CY24: PKR 355.8mln) due to higher staff costs, headcount expansion, and increased professional charges, while finance charges remained broadly stable at PKR 89.8mln (CY24: PKR 88.8mln). Consequently, profit before tax declined sharply to PKR 76.7mln (CY24: PKR 350.9mln), while taxation were reported at PKR 47.3mln (CY24: PKR 118mln) resulted in profit after tax of PKR 29.6mln (CY24: PKR 232.8mln), reflecting a significant contraction in profitability.

IZP is a local entity, capitalized in-country and partnering with local capital providers, removing cross-border and systemic downgrade risks and thus creating a more robust sustainable, and “future-proofed” structure.

The Company’s credit risk profile remains sound, underpinned by a well-defined risk appetite framework and comprehensive credit policies and procedures. Credit approvals follow a structured governance mechanism, whereby proposals are initially reviewed by Internal Credit Committee and then submitted to the New Business and Credit Committee (NBCC), a sub-committee of the Board, and subsequently routed for final approval by the Board. This multi-tiered process ensures robust oversight, disciplined underwriting, and prudent risk-taking across the portfolio. From the overall portfolio, potential risk is primarily concentrated in one of the Company’s guarantee exposures to Sunridge Foods Limited (SFL), amounting to approximately PKR 2.0bln. The exposure is supported by a collateral package, comprising fixed and floating charges, pledged shares, and sponsor guarantees. However, a decline in the value of pledged shares which constitute a small portion of the overall security package, has led to a minor security shortfall; management has committed to replenishing the collateral. The structure is further supported by liquidity buffers and a grace period on principal repayments, enhancing cash flow stability. The enforceability of the guarantee is not expected to be impacted in the near term, supported by the well-collateralized sukuk security structure. The payment mechanism is secured through a designated FSRA-backed arrangement, while upcoming installment obligations are maintained in a separate account, providing improved liquidity visibility. Despite ongoing shareholder-level disputes at the sponsor/parent level, which introduce governance concerns, management expects the obligor’s operations to remain stable. The exposure continues to be monitored closely under IZP’s internal credit watch framework.

IZP has a very conservative policy concerning the investment of its funded capital. The Company’s investment portfolio witnessed a mixed movement during CY25, reflecting expansion in short-term placements alongside a contraction in long-term holdings due to reclassification and maturity of sovereign securities. The short-term investment portfolio recorded a notable expansion during CY25, increasing by approximately 45% to PKR 3,441.4mln (CY24: PKR 2,368.7mln). The portfolio remains primarily concentrated in mutual funds, measured at fair value through profit or loss, which continued to constitute the major share of investments. These increased from PKR 2,243mln to PKR 2,501.4mln in CY25, reflecting sustained allocation toward market-based instruments. A significant increase was also observed in exposure to government securities, particularly Pakistan Investment Bonds (PIBs), carried at amortized cost, which rose sharply from PKR 125.8mln to PKR 939.9mln in CY25. This indicates a gradual shift towards sovereign-backed instruments, enhancing credit quality while increasing exposure to interest rate risk. Accrued markup on short-term and long-term investments amounted to PKR 116.5mln in CY25, which has been netted off in arriving at total investments. In contrast, the long-term investment portfolio declined to PKR 1,113.3mln (CY24: PKR 1,996.6mln), primarily due to reclassification of PIBs into current assets as they approached maturity. During the year, PIBs amounting to PKR 939.9mln were transferred to current maturity, while securities with a face value of PKR 132.0mln matured. No fresh long-term investments were undertaken, indicating a portfolio run-off strategy. Overall, the investment portfolio reflects a growing tilt towards liquid and market-linked instruments in the short-term book, while the long-term book is steadily transitioning towards liquidity ahead of final maturity in Feb’27.

The initial cash capital is being invested in low-risk and highly liquid investment options. IZP does not primarily rely on deposits for lending purposes, as funding requirements are being fulfilled by shareholders.

IZP is funded with PKR 4,125mln equity capital from PIDG company InfraCo Asia Investments and Karandaaz Pakistan, provided by the United Kingdom’s Foreign, Commonwealth, and Development Office (FCDO), and an initial matching Contingent Capital Facility (CCF) of PKR 4,125mln from GuarantCo. The shareholder's equity should increase by way of fresh equity injection and/or earnings growth, and the amount of the CCF available will increase on a matching basis up to a maximum of PKR 8,250mln from GuarantCo.