PACRA Maintains the Entity Ratings of International Business Management

The rating of International Business Management (“IBM” or "Sole Proprietor") reflects its established role as an indenting intermediary within Pakistan’s paper and paperboard trading ecosystem. IBM facilitates commercial linkages between international suppliers and local importers, enabling efficient procurement and supply of paper-related products in the domestic market. IBM is owned and managed by Mr. Saleem Bikiya, the head of the Bikiya family, which has maintained a longstanding presence in the paper trading business in Pakistan. The family’s broader business footprint includes Madiha International (Pvt.) Limited, engaged in the import and trading of paper products, and Bikiya Industries (Pvt.) Limited, which operates in the tissue paper segment. Operating as an indenting agency, IBM generates revenue through commissions earned by connecting suppliers with importers and facilitating trade transactions. This business model enables IBM to operate with relatively limited operational assets while maintaining a strong network within the industry. IBM’s experienced team plays an important role in coordinating transactions, assessing product specifications, and supporting importers in sourcing suitable paper and paperboard products from international markets. IBM benefits from a stable and long-standing client base, which includes several family-owned businesses operating within the paper trade. Given the relatively modest scale of operations, the sponsor remains closely involved in the strategic and operational oversight of the business. IBM maintains a low financial risk profile, primarily due to its intermediary role in the supply chain. IBM typically operates based on advance payments from customers before the execution of orders, which significantly limits its exposure to credit risk and reduces the need to hold inventory. This structure supports consistent cash flows and minimizes reliance on external borrowings. During FY25, IBM demonstrated a strong profitability profile. Operating profit margins stood at approximately 80.8%, while net profit margins remained around 79.7%, reflecting the high-margin nature of its commission-based business model and limited operating cost base. IBM’s financial position remained stable, providing a strong base to support ongoing operations.
The ratings are dependent on IBM's ability to sustain its position amidst a changing business environment and management’s ability to run the operations optimally. With the upcoming growth in the firm’s business; prudent financial discipline and implementation of a stringent control environment shall remain imperative.

About the Entity
IBM, established in 1993, is the sole proprietorship of Mr. Saleem Bikiya, an experienced business personnel serving more than 4 decades in the relevant field. He is working with the biggest groups in the paper industry including the Sinarmas group Indonesia known as Asia Pulp & Paper (APP). The main principle of sole proprietorship belongs to Indonesia and China.