PACRA Upgrades the Entity Ratings of National Rural Support Programme

The National Rural Support Programme (NRSP) has established itself as a pivotal force in Pakistan's rural development landscape, focusing on poverty alleviation, rural empowerment, and inclusive growth. Operating across 72 districts, including Azad Jammu and Kashmir, NRSP reaches over 3.8mln households through 254,670 community organizations, underscoring its extensive grassroots presence. As of 9MFY25, NRSP's lending portfolio has expanded to ~PKR 30bln, marking a YoY growth of ~30%. The micro-lending segment has yielded a return of ~22%, reflecting the programme's effective financial inclusion initiatives. The funding base comprises loans from financial institutions (9MFY24: ~PKR25bln), grants (9MFY24: ~PKR 4.7bln) from both local and international donors, and returns from investments (9MFY24: ~PKR 870mln), ensuring a diversified financial structure. Supported by sound financial and effective risk management systems, NRSP has managed its non-performing loans well, standing at ~PKR 721mln as of 9MFY25. The governance framework gathers support from renowned professionals. This, along with a lean organisational structure, prioritizing operational efficiency, bodes well for the NRSP. The control environment is fortified with well-developed policies. NRSP functions as the holding company for its subsidiaries, which are currently in their growth phases and require financial backing. NRSP generates substantial cash flows, despite providing financial support to the subsidiary Bank. Stability in the risk profile is backed by a strong equity base built through profit accumulation. The ratings are upgraded, supported by consistency in the positive trajectory in the lending book, with minimal non-performance, along with a very strong equity base. A well-equipped and experienced management team instills confidence in the strategic direction. Looking ahead, NRSP holds the ability to strengthen its lending portfolio, enhancing its core profitability, with streamlined audit procedures.
NRSP’s ability to maintain its asset quality and sustain growth in business volumes is pivotal. The impact of technological advancements on the operational efficiency, performance of NRSPs investment book, and risk management remains an essential factor. The sustainability of improved margins remains important.

About the Entity
National Rural Support Programme (‘NRSP’), established on 02-Nov-91, 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. The Board is chaired Mr. Shoaib Sultan Khan, with Dr. Rashid Bajwa serving as the CEO. They are supported by an experienced and professional team.