Rating Details	Rating Type	BFR
	Dissemination Date	Current (12-Mar-26 )	Previous (14-Mar-25)
	Action	Maintain	Maintain
	Rating	BFR 2	BFR 2
	Outlook	Stable	Stable
	Rating Watch	-	-

Rating Rationale	Factor	Comment
	Ownership	Aba Ali Habib Securities (Pvt.) Limited ("AAH" or the "Company") is a family concentrated brokerage house, with ~99.9% ownership held by Mr. Aba Ali Habib, who brings over 41 years of capital market experience.
	Governance	The Company upholds a well-established governance framework with a six-member board comprising three executive and three non-executive directors, including the CEO and one independent director, with female representation ensuring board diversity.
	Management and Client Services	AAH operates with a streamlined structure covering Research, Internal Audit, Compliance, and Risk Management, supported by an experienced management team. Client services include online trading via KITS-PSX and JTT Terminal, with a mobile application planned to enhance accessibility.
	Internal Controls and Regulatory Compilance	The Company has established and effective control environment, supported by outsourced Internal Audit services and the active oversight of the Audit and Risk Management Committee. A dedicated Compliance Department is also in place, responsible for effective compliance monitoring and reporting.
	Business Sustainability	AAH topline remains concentrated in equity brokerage, with diversification through MFS and MTS. In 1HFY26, operating revenue stood at ~PKR 118mln (SPLY: ~PKR 159mln), including brokerage income of ~PKR 67mln (SPLY: ~PKR 59mln), while profit after tax was ~PKR 321mln (SPLY: ~PKR 359mln).
	Financial Sustainability	AAH maintains an equity based capital structure, with no reliance on external debt. As of 1HFY26, equity increased to ~PKR 1,639mln (SPLY: ~PKR 1,318mln), reflecting improved capitalization, with a Liquid Capital Balance of ~PKR 850mln.

Key Rating Drivers

Fiduciary practices across client servicing, compliance, and core risk oversight remain integral to the control architecture, with incremental enhancements expected to further strengthen the overall governance and risk management environment. Going forward, deepening management capacity, refining internal control mechanisms, incrementally strengthening client protection, improving grievances mechanisms and conflict management frameworks will remain important for sustaining and improving the fiduciary profile.

About the Entity
	Legal Structure	Private Limited
	Year of Establishment	08-May-96
	Type of License	Trading and Self-clearing
	Majority Ownership	Mr. Aba Ali Habib | ~99.9%

Regulatory Disclosures	Analyst	Applicable Criteria	Related Research
	Usama Ali usama.ali@pacra.com +92-42-35869504 www.pacra.com	Methodology | Rating Modifiers | Apr-25 Assessment Framework | Broker Fiduciary Rating | Jan-26	Sector Study | Brokerage Firms | Feb-26

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