FFO Support Program (FFOSP) is registered as a Non-Banking Microfinance Company (NBMFC) under Section 42 of the Companies Ordinance, 1984 and is regulated by the Securities and Exchange Commission of Pakistan (SECP). The license was issued on 31-10-2016, and the Program operates as a not-for-profit financial inclusion entity.

FFOSP originated from the credit program of the Farmers Friend Organization (FFO), a development-oriented organization established in 2003 in Sheikhupura. The transformation into an SECP-regulated microfinance company in 2016 aimed at broadening outreach and enhancing access to financial and non-financial services for marginalized households. The institution has evolved into one of the growing development finance organizations in the microfinance sector of Pakistan.

FFO Support Program (FFOSP) delivers a diversified mix of financial and non-financial services tailored to the needs of underserved households, with a strong emphasis on sustainable livelihood outcomes and women’s economic empowerment. The Program conducts appraisal-backed individual and group lending, supported by complementary interventions in financial literacy, capacity building, and social sector initiatives, to enhance household economic resilience. FFOSP’s product suite is designed around client needs and includes multiple customised loan products such as Principal Loan and Small Business Loan for enterprise financing; Kisan Finance for agriculture producers; Mal Mawaishi Loan for livestock investment; School Sahara Loan to support low-cost school operations; Roshan Pakistan Loan for renewable energy solutions; and Prime Minister’s Interest-Free Loan (PMIFL) targeted at vulnerable households with limited financial access. These products, structured with varying loan sizes and repayment schedules, reflect the Program’s client-centric approach to financial inclusion and enterprise support. FFOSP also integrates insurance and safety net services, capacity-building trainings, and community awareness sessions to reinforce financial resilience and social development outcomes. Gender mainstreaming is a core operational focus nearly 74% of its clientele is female, reinforcing the Program’s role in empowering women micro-entrepreneurs. As of June 2025, FFOSP operates through 28 branches nationwide, enabling broad geographic outreach and deep community engagement across multiple districts of Pakistan.

FFO Support Program operates without share capital, and its ultimate authority resides with its governing body / members, in line with its not-for-profit and development-oriented mandate. The governing members have undertaken responsibility for oversight and policy direction in accordance with the applicable provisions of the Companies Act, 2017. This structure supports the Program’s mission-driven objectives while ensuring compliance with regulatory requirements.

Since its establishment, the ownership and governance structure of FFO Support Program has remained stable, supported by continuity at the governing body level and a long-term commitment towards financial inclusion objectives. The absence of frequent changes in governing members provides comfort regarding consistency in strategic direction and operational oversight.

The governing members possess relevant experience in microfinance, development finance, and social sector initiatives, enabling effective oversight of the Program’s activities. Their collective expertise supports prudent policy formulation, disciplined growth, and a continued focus on portfolio quality and recoveries.

Given its non-profit and program-based structure, the likelihood of direct financial support from governing members remains limited. However, the Program’s financial strength is supported by internally generated cash flows, retained surpluses, and access to institutional and development-oriented funding sources. However, the Program's robust financial management practices, diversified revenue streams, and strategic approach have reinforced its financial stability.

The Board of Directors of FFO Support Program comprises seven members, including the Chairperson, Independent Directors, and Non-Executive Directors. The presence of independent and non-executive members supports objective oversight and reduces concentration of control. The Chairperson provides leadership to the Board, while overall governance is strengthened through participation of members with diversified professional backgrounds.

The Board members collectively possess diversified experience across engineering, trading, social development, gender and environmental initiatives, real estate, and operations management. The overall professional experience of Board members ranges up to nearly three decades, providing depth and maturity in strategic oversight. The inclusion of members with development-sector exposure supports alignment with the Program’s financial inclusion mandate, while business-oriented experience contributes to operational and financial prudence.

Board effectiveness is reinforced through an active committee framework comprising the Audit Committee, Human Resource (HR) Committee, and Credit & Risk Management (CRM) Committee. The Audit Committee oversees financial reporting, internal controls, and audit-related functions, thereby strengthening financial discipline and transparency. The HR Committee is responsible for human resource policies, performance management, and succession planning, supporting organizational continuity. The CRM Committee reviews credit policies, monitors portfolio performance, and oversees key risk indicators, strengthening risk governance. The presence of independent and non-executive directors across these committees enhances governance quality and ensures balanced oversight. The attendance during the meetings has been satisfactory, reflecting the commitment of the members. Moreover, the minutes of the meetings are meticulously documented, ensuring transparency and accountability in all board activities.

Illyas Saeed & Co., Chartered Accountants, serve as the External Auditors of the Program. For FY25, they issued an unqualified opinion on the financial statements, affirming the accuracy and reliability of the Program's financial reporting. An Internal Audit Department is in place, which reports directly to the Audit Committee, further strengthening the Program's commitment to transparency and accountability. Additionally, a dedicated Compliance Department conducts regular inspections of all relevant departments, ensuring adherence to regulatory requirements and internal policies.

FFOSP is a not-for-profit organization operating under a structured governance model. The organization is led by a Board of Directors comprising non-executive and independent members responsible for overseeing the overall strategy and operations. The Board ensures accountability, compliance, and alignment with the organization’s mission to support microfinance and development objectives. FFOSP operates with a decentralized branch network that facilitates efficient loan approvals, disbursements, and monitoring across all operational regions.

The senior management team at FFO Support Program (FFOSP) comprises highly experienced professionals with extensive expertise in microfinance, financial operations, and institutional development. The Chief Executive Officer, Muhammad Irfan Khokhar, leads strategic and operational decisions, bringing over 30 years of multidimensional experience in the development sector and microfinance. Supporting him is Tahir Jameel Mirza, Head of Operations, who manages operational strategy and project execution, leveraging more than 35 years of experience in HR, operations, and finance. Muhammad Javed Aslam, Head of Compliance & Risk/ Company Secretary, ensures strict adherence to regulatory standards, strengthening internal controls, and promoting a robust culture of transparency and accountability, backed by 18 years of professional experience in finance, audit, and HR management. Muhammad Junaid Rehmat oversees end-to-end accounts management with more than 19 years of experience in financial accounting and compliance, while the finance function is led by Maqsood Alam Ansari, an ACCA-finalist professional with over 10 years of experience in financial reporting, budgeting, and accounting. Maria Arshad, Head of Human Resource, who oversees staff development, organizational design, and coordination, leveraging more than 11 years of experience in HR. Muhammad Noman Rehmat manages administration and procurement functions, ensuring operational support with 12 years of diversified experience, and Ali Raza Tariq Head of Internal Audit, ensures strong internal controls and compliance frameworks, backed by 11 years of professional experience in finance, audit & accounting. Additionally, Muhammad Kaleem Sabir, Head of ICT, directs technology infrastructure and digital transformation initiatives, leveraging over 15 years of IT experience. Collectively, this management team ensures the effective implementation of programs, adherence to financial and social objectives, and the continued advancement of FFOSP’s mission to promote financial inclusion across underserved communities.

FFOSP benefits from a structured decision-making process, with defined committees overseeing operational and strategic priorities. Each department head reports directly to the CEO, ensuring accountability and timely escalation of critical matters. The management has consistently demonstrated efficiency in executing lending programs, maintaining portfolio quality, and achieving high recovery rates, reflecting operational effectiveness and strong oversight mechanisms.

FFO Support Program has established a robust Management Information System (MIS) that integrates branch‑level operations with centralized reporting to support effective decision‑making and risk management. The MIS captures key operational and financial metrics, including loan disbursements, portfolio quality, collection performance, and real‑time data analytics, enabling management to monitor performance and portfolio health across regions. As part of risk assessment and credit evaluation practices, FFOSP incorporates credit checks and bureau data into borrower evaluation processes, consistent with industry standards such as CIB (Credit Information Bureau) reporting, which assists in evaluating borrower credit histories. The MIS framework enhances transparency, supports compliance with regulatory and internal policies, and allows for timely reporting to senior management and stakeholders, thereby strengthening overall operational governance.

FFO Support Program has implemented a comprehensive risk management policy to effectively manage operational, financial, and credit risks across its portfolio. The loan approval process is decentralized, empowering branch-level teams to make timely and informed lending decisions, which enhances responsiveness and reduces bottlenecks associated with centralized processing. Loan recovery is systematically conducted through compliance and field officers at each branch, ensuring an organized and accessible approach to repayments. This decentralized model strengthens operational resilience, minimizes potential credit and operational risks, and promotes consistent adherence to the organization’s governance and risk mitigation standards. Regular monitoring, internal audits, and risk reporting further reinforce the framework, supporting informed decision-making by senior management.

FFO Support Program has strategically invested in technological infrastructure to enhance automation, operational efficiency, and scalability. Digital platforms are utilized for loan processing, client management, portfolio monitoring, and real-time reporting, allowing management to track performance across branches seamlessly. The technology framework also ensures data accuracy, security, and accessibility, enabling effective portfolio management and regulatory compliance. Looking ahead, FFOSP is committed to leveraging technological innovations to further improve service delivery, streamline operational workflows, and enhance financial literacy among clients, thereby supporting its mission of promoting financial inclusion and sustainable community development.

Pakistan’s microfinance sector remains a key pillar of financial inclusion, serving low-income and underserved segments amid a gradually stabilizing macroeconomic environment. During FY25, the overall microfinance industry, comprising Microfinance Banks (MFBs), Microfinance Institutions (MFIs), and Rural Support Programmes (RSPs), recorded a Gross Loan Portfolio (GLP) of ~PKR 687 billion, reflecting continued expansion supported by easing inflation, moderation in interest rates, and improved economic activity. The sector catered to an estimated ~12.2 million active borrowers, while the average loan size recovered to around ~PKR 56,344, indicating portfolio recalibration toward sustainable lending. Despite macro normalization, the industry continues to operate in a competitive and risk-sensitive environment, particularly given climate-related vulnerabilities and income volatility among borrowers. Within the broader industry, the MFIs and RSPs segment accounted for nearly ~23% of the total sector GLP in FY25, with their combined loan portfolio expanding sharply to ~PKR 204 billion, marking a significant YoY growth of about 80%. The active borrower base of this segment improved to around ~3.4 million, while the average loan size increased materially to nearly ~PKR 60,685, reflecting a gradual shift toward relatively higher-value, income-generating, and housing-related loans. The growth trajectory of MFIs and RSPs has been supported by disciplined lending practices, targeted development programs, and deeper community-level engagement, positioning this segment as comparatively more stable than MFBs during periods of economic stress. Asset quality indicators for MFIs and RSPs remained strong in FY25. Non-Performing Loans (NPLs) declined to ~PKR 587.9 million, despite the sharp expansion in the loan portfolio. Consequently, the infection ratio improved further to around ~1.1%, down from about ~1.3% in FY24. The consistently low NPL levels and infection ratios underscore the effectiveness of MFIs’ conservative credit appraisal frameworks, close borrower monitoring, and strong recovery mechanisms factors that continue to support the credit profile of well-established programs such as the FFO Support Program.

FFO Support Program operates as a small-sized Microfinance Institution (MFI) with a focused outreach strategy. While its overall scale remains limited compared to large MFIs, FFOSP has maintained a stable presence through prudent portfolio management and localized operations. As of Jun’25, the institution reported a gross loan portfolio of approximately PKR 1,402 million, reflecting gradual growth over recent years. The institution’s-controlled expansion, coupled with close borrower engagement and strong recovery performance, supports its relative position within the MFI segment. However, competitive pressures from larger MFIs with broader outreach and diversified product offerings remain a constraint on market share expansion.

FFOSP's revenue stream is primarily driven by markup income from microfinance lending activities. During FY25, the institution generated markup income of ~PKR 516mln, compared to ~PKR 409mln in FY24, reflecting higher average outstanding advances and improved asset yields amid an elevated interest rate environment. The increase in revenue was mainly attributable to the repricing of the loan portfolio in line with market conditions. Net markup income constituted the entirety of total income, indicating reliance on core lending operations without meaningful contribution from non-markup income sources.

FFOSP earning assets stood at ~PKR 1,435 mln in FY25, representing ~81.4% of total assets of PKR 1,763 mln, highlighting a strong asset base focused on income generation. The entity reported a profit after tax of ~PKR 27 mln in FY25, reflecting a modest yet positive profitability amidst operational and market challenges. The earnings indicate initial financial stability and demonstrate the potential for improved returns as the portfolio scales and operational efficiencies continue to strengthen.

FFOSP sustainability is underpinned by its conservative growth strategy, focus on portfolio quality, and strong recovery performance. The institution demonstrated operational viability, with an Operational Self-Sufficiency (OSS) ratio of ~105.5% in FY25, indicating its ability to cover operating and financial costs through core income. However, long-term sustainability remains dependent on effective cost management, gradual portfolio expansion, and potential diversification of revenue streams. Continued emphasis on governance, risk management, and technology adoption is expected to support sustainable operations over the medium term.

FFOSP exhibits a strong credit risk profile, supported by a decentralized loan approval framework and close monitoring at the branch level. As of Jun’25, the institution’s gross advances stood at ~PKR 1,402mln, while non-performing advances remained low at ~PKR 4mln, translating into a PAR 30 ratio of ~0.3%, which is significantly better than the sector average. The non-performing finances to equity ratio stood at ~0.6%, reflecting strong capital protection against asset quality deterioration. The loan portfolio remains granular with limited concentration risk, supporting overall asset quality.

Market risk exposure remains limited, as FFOSP's asset base is predominantly composed of microfinance advances. The institution maintains a minimal investment portfolio, with investments of ~PKR 46mln in mutual funds as of Jun’25, limiting exposure to market volatility. Earnings remain sensitive to interest rate movements, as higher rates support asset yields but also increase funding costs. Active pricing adjustments have partially mitigated this risk.

FFOSP relies entirely on borrowings for funding, with no deposit base. As of Jun’25, total borrowings amounted to ~PKR 1,000mln, sourced primarily from financial institutions. The cost of borrowings increased to ~20.5% during FY25, reflecting prevailing tight monetary conditions. While funding remains concentrated, FFOSP has maintained stable access to lenders, supporting liquidity and operational continuity. Nonetheless, reliance on borrowed funds exposes the institution to refinancing and cost-of-funds risks.

Liquidity indicators remained adequate during FY25. Cash and bank balances stood at ~PKR 179mln, while deposits with banks amounted to ~PKR 33mln. The finances-to-funding ratio was recorded at ~140.6%, indicating effective utilization of available funding. However, limited liquidity buffers and the absence of deposits necessitate prudent cash flow management to meet obligations in a timely manner.

As an MFI regulated by SECP, FFOSP is not subject to a prescribed minimum capital adequacy requirement. Nevertheless, the institution maintains a sound capitalization profile. As of Jun’25, equity stood at PKR 718 million, translating into an equity-to-total-assets ratio of 40.7%, providing a comfortable buffer against potential shocks. Capital formation improved modestly during FY25, supported by positive profitability, strengthening the institution’s risk absorption capacity.