PACRA maintains preliminary ratings of National Vocational and Technical Training Commission - PPTFC - PKR 1bln - TBI

National Vocational and Technical Training Commission (“NAVTTC”) is a statutory body established under the NAVTTC Act, 2011, mandated to regulate, coordinate, and promote technical and vocational training across Pakistan. With the approval of the Government of Pakistan (GoP), NAVTTC, in collaboration with the Transaction Advisors and Program Managers (TAPM), is implementing Pakistan’s first social impact bond—the Pakistan Skills Bond Impact Program (“PSIB Program”). This results-based, blended-finance, public-private partnership aims to enhance skills training, job placement, and employment outcomes. Under the PSIB Program, NAVTTC, as the Issuer, intends to issue rated, privately placed, GoP-guaranteed, and subsequently listed Term Finance Certificates (TFCs) of up to PKR 1bln under the Debt Securities Regulations. The proceeds will finance skills-development initiatives, with an estimated average training cost of PKR 200,000 per trainee, enabling the training of approximately 4,850 individuals. The TFCs will be fully guaranteed by the GoP and redeemed via a bullet payment at Final Maturity, along with semi-annual profit/mark-up payments to TFC Holders. In addition to the GoP Guarantee, the Issuer shall deposit sufficient funds into the Debt Payment Account on each Redemption Date—sourced from its Outcome Funder or the GoP budgetary allocation—to meet all upcoming payment obligations. NAVTTC is currently in the process of concluding the selection of Service Providers, following which the first disbursement under the Bond is anticipated by the end of July 2026. NAVTTC receives development grants from the GoP, which are disbursed through the Auditor General of Pakistan. The Issuer must ensure adequate Budgetary Allocation in the Federal Budget for its TFC-related obligations and provide the Issue Agent with supporting documentation at least four (4) months before the first Redemption Date. If the required Budgetary Allocation or quarterly allocation by AGP is not made, or if released funds are insufficient, the Issuer shall secure appropriation from existing allocated funds or supplementary funds from the Ministry of Finance (MoF)/AGP at least forty-five days before the relevant Redemption Date and provide the Issue Agent with evidence of such request and approval. During FY25, the Commission recorded total receipts of PKR 9,879mln (FY24: PKR 5,426mln), primarily comprising development receipts of PKR 9,167mln and non-development receipts of PKR 712mln. Total expenditure stood at PKR 9,865mln (FY24: PKR 4,925mln). Key expenditures mainly included payments to partner institutes under various skill development programs and employee-related expenses. Whereas, the Commission maintained a marginal surplus of PKR 13.9mln during FY25 (FY24: PKR 0.9mln). During 9MFY26, the Commission reported total receipts of PKR 7,391mln against expenditure of PKR 3,141mln, resulting in a surplus of PKR 4,249mln, primarily attributable to unutilized development funds expected to be deployed in the remaining months of FY26.
Going forward, compliance with the conditions precedent outlined in the issuance agreement and the underlying Government Guarantee will remain essential.

About the Entity
NAVTTC is an autonomous federal body in Pakistan established in 2005 under the Ministry of Federal Education and Professional Training, NAVTTC operates under the NAVTTC Act 2011, which defines its mandate and authority.

About the Instrument
NAVTTC is issuing secured, privately placed Term Finance Certificates (“PPTFCs”) of PKR 1 billion, with a tenor of up to three years and a profit rate of 3-year PKRV + 0.15%. Profit will be paid semi-annually, with principal repaid in a bullet payment at maturity.