PACRA Downgrades Asset Manager Rating of Pak Oman Asset Management Company Limited

The rating of Pak Oman Asset Management Company Limited ("POAMCL" and the "AMC") reflects the persistently deteriorating business profile, continued erosion in financial capacity, and increasing regulatory and operating uncertainties. The AMC's AUM base remains subdued at PKR 2.1bn as of Jun’26, with market share declining to around 0.05% from 0.14% as of Jun’25. Although AUM increased from PKR 1.5bn as of Jun’25 to PKR 2.1bn as of Jun’26, the increase provides limited comfort as it was largely driven by a temporary inflow into the Pak Oman Micro Finance Fund, whose AUM subsequently contracted sharply from PKR 7.2bn as of Dec’25 to PKR 764mln as of Jun’26, highlighting the volatile and non-recurring nature of the inflow rather than any meaningful strengthening of the underlying franchise. The fund profile remains further constrained by persistent regulatory non-compliance and elevated concentration risk, with two out of nine managed funds remaining below the prescribed minimum AUM thresholds, while the top-ten investors account for approximately 80–90% of respective fund AUMs and related-party holdings average around 54%,which may provide some cushion against further redemption pressure. Overall Fund’s performance remained satisfactory for the trailing twelve months ending in Jun’26. Financial performance has continued to deteriorate, the subdued AUM base remains negligible, constraining recurring management fee generation resultantly the net loss widened to PKR 29.9mln in CY25 (PKR 6.4mln loss in CY24; PKR 12.6mln loss in 3MCY26), Continued losses have resulted in equity erosion from PKR 232.4mln in CY24 to PKR 202.5mln in CY25 and further to PKR 189.9mln as of Mar’26. The AMC’s capital position remains a critical constraint, with equity of PKR 189.9mln falling below the aggregate minimum regulatory requirement of approximately PKR 230mln. The resulting capital shortfall remains unresolved, further constraining financial flexibility. This weakness is compounded by the “Material Uncertainty Relating to Going Concern” highlighted by BDO Ebrahim & Co. in the CY25 audit report, citing the non-compliant net equity position and expired licenses. The AMC and IAS licenses expired during CY25 and remain unrenewed as of the reporting date, pending SECP action, further elevating uncertainty around operational continuity. Overall, the AMC remains dependent on timely external capital support to address the regulatory deficiency and sustain operations, while stabilization of its AUM base and restoration of recurring profitability remain critical. Against these challenges, a few potential investors are also currently evaluating the acquisition of the AMC, which, if successfully concluded and transitioned, could provide the required capital and strategic support to revive the AMC's operations and rebuild its franchise.
Going forward, timely capital support, restoration of regulatory compliance, license renewal, and stabilization of AUM and profitability will remain key rating considerations.

About the Entity
Pak Oman Asset Management Company Limited was incorporated on July 28, 2006 as a public unlisted company. It is licensed by the Securities and Exchange Commission of Pakistan to carry out asset management and investment advisory services under the Non-Banking Finance Companies Regulations. The AMC is a majority-owned subsidiary of Pak Oman Investment Company Limited (99.46%). The remaining shareholder is Oman International Development Company, SAOG (0.54%). The AMC'c Board of Directors comprises five members, including the managing director of Pak Oman Investment Company, Mr. Nauman Ansari. The board’s chairman H.H Juland Jaifer Salim Al-Said has over 16 years of experience at the Oman Investment Authority (OIA) (Previously known as the State General Reserve Fund).