Rating Details	Rating Type	BFR
	Dissemination Date	Current (20-May-26 )	Previous (20-May-25)
	Action	Maintain	Maintain
	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), while Mr. Muhammad Taufique retains a nominal stake.
	Governance	The Board presently comprises the Chief Executive Officer, Ahfaz Mustafa, and non-executive director Muhammad Taufique. The appointment of an independent director could further reinforce the Board governance architecture.
	Management and Client Services	IISPL has implemented a streamlined organizational structure with clearly defined departments to enhance operational efficiency. While supported by an experienced management team, further clarification of key leadership roles could improve client service delivery.
	Internal Controls and Regulatory Compilance	The Company maintains a sound control framework supported by offsite backups, formal KYC/CDD procedures, and full compliance with AML/CFT regulations as per the Securities and Exchange Commission of Pakistan. An established Audit Committee further enhances governance and oversight.
	Business Sustainability	IISPL derives the majority of its revenue from core brokerage operations. In 1HFY26, commission income rose to PKR 162 million (SPLY: PKR 127 million). As of Dec 25, the investment portfolio stood at PKR 373 million (SPLY: PKR 184 million), primarily comprising short-term investments, exposing nearly 49% of the portfolio to market-related risk.
	Financial Sustainability	IISPL maintains a strong capitalization profile, with equity increasing to PKR 579 million (SPLY: PKR 427 million) and LCB at PKR 289 million. During 1HFY26, the Company posted profit after taxation of PKR 136 million, compared to PKR 100 million in SPLY.

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	06-Aug-04
	Type of License	Trading and Self-clearing
	Majority Ownership	Mr. Ahfaz Mustafa (~65%)

Regulatory Disclosures	Analyst	Applicable Criteria	Related Research
	Amna Akmal amna.akmal@pacra.com +92-42-35869504 www.pacra.com	Assessment Framework | Broker Fiduciary Rating | Jan-26 Methodology | Rating Modifiers | Apr-26	Sector Study | Brokerage Firms | Feb-26

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