Rating Details	Rating Type	BFR
	Dissemination Date	Current (20-May-25 )	Previous (04-Jun-24)
	Action	Maintain	Upgrade
	Rating	BFR 3+	BFR 3+
	Outlook	Stable	Stable
	Rating Watch	-	-

Rating Rationale	Factor	Comment
	Ownership	IISPL is a family-owned business, with majority stake (65%) held by Mr. Ahfaz Mustafa. The remaining shares are divided between his sister Ms. Ayesha Naseem, and brother Mr. Azhar Iqbal (17.4% each),
	Governance	The Company's board consists of CEO Mr. Ahfaz Mustafa and non-executive director Mr. Muhammad Taufique. Adding an independent director would further enhance governance.
	Management and Client Services	To enhance operational efficiency in 1HFY25, IISPL implemented a streamlined organizational structure with clearly defined departments, While led by an experienced management team, further role clarif
	Internal Controls and Regulatory Compilance	In, 1HFY25, the Company strengthened its control framework by implementing underwriting discipline, with policies ensuring regulatory compliance. Appointing a dedicated departmental head, could furthe
	Business Sustainability	IISPL's revenue is anchored in core equity trading, supplemented by underwriting advisory, and MTS/MFS services. 1HFY25 delivered 102% commission growth (PKR 130m), though profits fell 27% (PKR 103m)
	Financial Sustainability	IISPL's December 2024 financials show strong capitalization with PKR 427m equity (+30% YoY), meeting SECP requirements. The Company's healthy 1.95:1 current ratio (PKR 809m assets vs PKR 415m liabilit

Key Rating Drivers

IISPL has solidified its competitive position in Pakistan's brokerage sector through a targeted HNWI strategy and product diversification, successfully expanding its premium client base. The sponsors' demonstrated capital markets expertise delivered strong proprietary trading gains during 1HFY25, strengthening the earnings profile. Rating sustainability will be contingent upon: strengthened governance protocols with codified management responsibilities, effective board oversight, strategic revenue mix-diversification and de-risked earnings profile from market-sensitive gains, all underpinned by disciplined risk management in Pakistan's evolving brokerage sector.

About the Entity
	Legal Structure	Private Limited
	Year of Establishment	06-Aug-04
	Type of License	Trading and Self-clearing
	Majority Ownership	Mr. Ahfaz Mustafa (~65%)

Regulatory Disclosures	Analyst	Applicable Criteria	Related Research
	Usama Ali usama.ali@pacra.com +92-42-35869504 www.pacra.com	Assessment Framework | Broker Fiduciary Rating | Jan-25	Sector Study | Brokerage Firms | Feb-25

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