PACRA Maintains the Entity Ratings of Kashf Foundation

Kashf Foundation (herein referred to as “KF” or “The Foundation / Company”) incorporated on February 15, 2007, as a public company limited by guarantee, and licensed as a not-for-profit organization. The mission of the Company is serving all with dignity by providing high quality and sustainable microfinance services to low-income families and micro-entrepreneurs to enhance financial capabilities, alleviate household poverty and enable all, especially women, to become active agents of social and economic change. The portfolio coverage in terms of the gross loan portfolio (GLP) presents the Foundation as a market leader in the dedicated non-depository microfinance segment. The Foundations’ product slate is divided into nine categories and covers multiple industry segments. The Kashf Karobar Karza (KKK) is their prime product followed by Kashf Fauri Karza (KFK), Kashf Maweshi Karza (KMK), and Kashf Murabaha (KM). The assigned rating takes comfort from the consistent growth in the loan portfolio over the last three years while maintaining PAR (Portfolio at Risk) at around 0.5% and generating sufficient cashflows to augment their disbursements level. During the 1HFY25, the GLP of the Foundation improved and stood at ~PKR 32,816mln (FY24: ~PKR 29,133mln). The Kashf Foundation successfully grew its lending portfolio, added new customers, and expanded its outreach through new branches, all while maintaining caution regarding the infection ratio. Previously, the microfinance industry faced multiple macroeconomic challenges, however, in the first half of FY25, economic indicators have shown signs of stabilization, with a gradual reduction in policy rates and inflation. This stabilization is expected to provide crucial support to the microfinance sector. The Board of the Foundation operates primarily in an advisory capacity, consisting of reputable and well-educated individuals. The Foundation boasts a stable and experienced senior management team, supported by clear reporting lines outlined in a formalized organogram and a robust monitoring process. Through integrated technology, the head office facilitates real-time assessment of recoveries and disbursements from all its branches, ensuring a well-controlled environment. The Foundation has a highly focused strategy within the compliance and audit department to monitor customers from loan disbursement to the recovery process. A dedicated team of professionals oversees the transparency of these processes.
The rating depends on the Foundation’s ability to grow amid a challenging financial environment. With consistent growth in its clientele, portfolio, and sustainability, a well-defined liquidity framework and alignment of the Foundation's performance with financial projections will be crucial.

About the Entity
Kashf Foundation ("KF") was incorporated with the Securities and Exchange Commission of Pakistan (SECP) in 2007 as a Public Company Limited by Guarantee under Section 42 of the Companies Ordinance, 1984 (now Companies Act, 2017). The Board comprises 10 members. Dr. Hafiz Ahmed Pasha is the Chairman of the board. Ms. Roshaneh Zafar is the founder and CEO of the foundation.