PACRA Assigns Initial Ratings to FFO Support Program

FFO Support Program (“the Program”) is a Section 42 not-for-profit organization registered with the SECP, formed through the transformation of the Microfinance Program of the Farmers Friend Organization (FFO). Established in 2016, the Program aims to broaden financial inclusion and improve access to financial and non-financial services for underserved households. FFOSP offers appraisal-backed individual and group lending products, including Principal Loan (PL), Small Business Loan (SBL), Kisan Finance (KF), Mal Mawaishi Loan (MML), School Sahara Loan (SSL), Roshan Pakistan Loan (RPL), and PM Interest-Free Loan (PMIFL), complemented by social and non-financial interventions such as livestock insurance, credit for life insurance, financial education, business development training, vocational training, and gender empowerment initiatives tailored to client needs. Approximately ~74% of the Program’s clientele comprises women, reflecting a strong focus on women’s economic empowerment and household resilience. As of June 2025, FFOSP operates through 28 branches across Pakistan, with outreach primarily concentrated in rural and semi-urban areas where access to formal financial services remains limited, supporting communities that are largely excluded from the conventional banking system. The Program operates within Pakistan’s microfinance industry, which is closely linked to broader micro-economic indicators and plays a critical role in extending credit to low-income and vulnerable segments of the population. The industry comprises Non-Banking Finance Companies (NBFCs), Microfinance Banks (MFBs), and Rural Support Programs (RSPs), collectively forming a significant segment of the financial sector with a gross loan portfolio exceeding PKR 687 billion, of which MFBs account for approximately PKR 483 billion and MFIs for around PKR 204 billion. In MFI, the Average ticket sizes remain modest at ~PKR 60,684, with ~3.4 million active borrowers, reflecting the sector’s focus on livelihood and consumption-based financing. Non-performing loans declined to ~PKR 607.9 million, resulting in an infection ratio of ~1.1% in FY25. Within this operating environment, FFOSP maintains a focused presence, leveraging its localized branch network, client-centric product design, and close borrower engagement to support portfolio quality and outreach continuity. The Program operates under a stable governance framework, supported by an experienced and independent Board of Directors. Governance is strengthened through board-level committees covering audit, human resources, and credit & risk management, ensuring structured oversight and accountability. The management team is capable and experienced, with functional heads overseeing operations, finance, ICT, compliance, and risk management. The Program has established structured operational and reporting processes to monitor loan disbursements, portfolio performance, and recoveries. While internal controls are adequate, there is scope for further strengthening as the institution expands its operations. During FY25, the Program reported a gross loan portfolio of ~PKR 1,402 million, generating markup income of ~PKR 516 million and a profit after tax of ~PKR 27 million. Portfolio quality remained strong, with a PAR 30 of ~0.3%, reflecting disciplined credit appraisal and recovery practices. The equity-to-total-assets ratio stood at ~40.7%, providing a sound capitalization buffer against potential shocks. FFOSP relies primarily on borrowings from financial institutions for funding, maintains adequate liquidity levels, and continues to demonstrate prudent portfolio management and conservative risk practices.
The ratings are contingent on the Program’s ability to maintain portfolio quality, sustain financial stability, and continue its outreach to underserved communities, particularly in line with its women-focused and development-oriented mandate. Continued emphasis on cost control, diversification of funding sources, and effective governance will remain important for long-term sustainability.

About the Entity
FFO Support Program delivers financial services efficiently, supported by strong governance practices and capable management. Led by CEO Irfan Khokhar and a seven-member Board, the Program supports inclusive lending, capacity-building, and social initiatives, empowering marginalized households across Pakistan and reinforcing its credibility in the microfinance sector.