Pakistan Kuwait Investment Company (Private) Limited was established in March 1979 as a joint venture between the Governments of Pakistan (GoP) and Kuwait. It is equally owned by GoP through the State Bank of Pakistan (SBP) and the Government of Kuwait through the Kuwait Investment Authority (KIA), representing their respective governments.

The Kuwait Investment Authority (KIA), established in 1982, is the sovereign wealth fund of the State of Kuwait and operates independently under the Ministry of Finance.  KIA’s primary mandate is to invest Kuwait’s wealth globally across diverse asset classes—including public and private equity, fixed income, real estate, and alternatives—with a focus on long-term growth and prudent risk management. It also ensures liquidity for the state treasury and supports the financing of budget deficits when needed, helping to safeguard the country’s financial stability and secure wealth for future generations.  PKIC was established to finance economically viable and technically feasible projects.

The objective of the Company is to profitably promote industrial investment in Pakistan. PKIC has been following a prudent strategy in recent years with respect to advances and investment. Consequently, it has developed a diversified portfolio of advances, strategic, and equity investments.

PKIC is equally owned by GoP through the State Bank of Pakistan (SBP) and the Government of Kuwait through Kuwait Investment Authority (KIA), representing their respective governments

The ownership structure has remained the same since the inception of the Company. It is likely to stay the same in the foreseeable future.

The business acumen of sovereign sponsors is considered strong.  The Kuwait Investment Authority (KIA), Kuwait’s sovereign wealth fund, administers the State’s financial reserves with the aim of generating sustainable, long-term investment returns.

The Government of Pakistan and the Government of Kuwait, as sovereign sponsors, demonstrate strong financial capacity and creditworthiness, enabling them to support long-term investments effectively

The overall control of the company vests with a six-member board (BoD), having equal representation from both governments. Board’s Chairman is a representative of KIA. Whereas, the Managing Director is the representative of the GoP. 

The BoD members have extensive experience in the field of finance and investment management.  This contributes valuable insights into investment management and supports the development of robust risk management policies and procedures.  Mr. Mohammad A. M. Al-Fares has been the chairman of PKIC since May 2021. He holds a bachelor's degree in Social Sciences from Kuwait University. He is currently serving as Managing Director of M/s. Kuwaiti Egyptian Investment Company, S.A.E. on behalf of KIA. Mr. Saad Ur Rahman Khan is the Managing Director of Pak Kuwait Investment Co., (Private) Limited, since July 2023. Mr. Abdullah Salah A. Al-Sayer is a nominee Director of Kuwait Investment Authority (KIA). He holds a Bachelor's degree in B.A. (Finance) from the University of Kuwait. He is currently working in the Real Estate & Infrastructure Department of Kuwait Investment Authority. Mr. Naveed Alauddin is a nominee of the Government of Pakistan on the Board of PKIC since February 17, 2012. He has done a Master's in Business Administration from Imperial College Management School, London, and also holds a degree in BSc. Engineering (Civil) from UET, Lahore. Mr. Jasem A. Al Hajry is nominated by the Kuwait Investment Authority (KIA). He holds a Master’s degree in Economics from Kuwait University. He has an overall experience of more than 16 years at KIA, and as an Investment Manager, he is currently a leader in the North American team, responsible for making investment decisions and managing the North American Equities Section. Since 2023. Mr. Mansoor Masood Khan is nominated by the Ministry of Finance on behalf of the government of Pakistan. He has done a Master's in Business Administration from the University of Hartford, Connecticut, USA, and also holds a Master of Arts in Economics from the University of Karachi, Pakistan. His banking career spans more than 39 years.

The board has formulated four committees, namely Audit Committee, Executive Committee, Human Resource and Remuneration Committee, and Risk Management Committee, to ensure smooth and effective monitoring of operations.  Five BoD meetings were held during CY24.

A.F Ferguson and Co, Chartered Accountants, was the company’s external auditors. They have given an unqualified opinion on the financials for the year ended December 31, 2024. The company has an in-house internal audit department.

PKIC maintains a well-aligned organizational structure designed to ensure operational efficiency. The company's core functions are structured into key areas, including Risk Management, Compliance, Corporate and Investment Banking, Capital Markets and Treasury, Finance, Internal Audit, Human Resources, and General Support Services. The overall operations are overseen by the Managing Director, to whom all department heads report directly, with the exception of the Head of Internal Audit—who reports to the Board Audit Committee—and the Chief Risk Officer, who reports to the Board’s Risk Management Committee.

PKIC’s management team comprises seasoned and well-qualified professionals with extensive experience and long-standing association with the organization. The Managing Director, Mr Saad Ur Rahman, brings over 30 years of diverse banking experience across Retail, Trade, SME, Commercial, Corporate, Investment, International Banking, Financial Institutions, and Risk Management. He began his career with MCB Bank Limited in 1993 and has since held senior positions at leading local and multinational banks, including Citibank, National Bank of Pakistan, Habib Bank Limited, and Bank Alfalah. He has also served on the boards of several organizations, such as Alfalah Asset Management, NBP Fund Management, NBP Kazakhstan, NBP Tajikistan, Sapphire Wind Power, and Triconboston Consulting Corporation. Mr. Saad is a graduate of the Institute of Business Administration (IBA), Karachi. Mr. Farooq Nasim has succeeded Mr. Naveed Sherwani as the Company’s Chief Risk Officer.  Mr. Farooq Nasim has an extensive banking career spanning more than 27 years in the area of Corporate, Commercial and Risk Management. Having started his professional journey with Union Bank in 1995, he has since held numerous senior positions in large commercial banks including Area Manager Corporate & Investment Banking at Bank Alfalah Limited, Regional Corporate Head – Central, Head, Middle Markets and Head Corporate Banking at Silk Bank Limited, Head Commercial Banking – Central at Habib Bank Limited, Regional Head North – Corporate Banking and Deputy Chief Risk Officer at Pak Kuwait Investment Company. Mr. Atif, Group Head Treasury, Capital Markets & FIs at PKIC, is Master of Business Administration (Finance) with over 18 years of diversified professional experience in financial institutions that includes Faysal Bank. Mr. Atif specializes in treasury and capital market operations and represents PKIC at various forums. Mr. Tamim Shabbir (FCA, CIMA-UK) has been serving as CFO of Pakistan Kuwait Investment Company (Private) Limited since June 27, 2024. With 25 years of experience in finance, he previously held the CFO role at Al Baraka Bank (Pakistan) Limited from 2013.

The management is assisted by five management committees, Asset and Liability Committee, Management Committee, IT Steering Committee, Portfolio Management Commiittee,  and Compliance Committee of Management. The existence of the management committees has strengthened the overall management effectiveness of the Company.

The department heads monitor the performance of their departments on a daily basis through different MIS reports generated through the system. They report the performance of their respective departments to the CEO on a periodic basis

PKIC has developed a robust and comprehensive risk management framework aimed at identifying and mitigating risks at the organizational level supported by strong oversight from the Board of Directors, effective management supervision, stringent limit monitoring framework and well-established models including Obligor Risk Rating {ORR), Facility Risk Ratings (FRR), CAMEL rating model, Environmental & Social Risk Rating (ESRR) Model and ECL Model.

CY24 was a challenging year for the DFI industry in terms of Net Interest Margin (NIM) generation. However, consequent to interest rate cuts by SBP, NIM started to improve from 4QCY24. This trend further strengthened in 1QCY25, primarily driven by prudent duration matching and effective market risk management, evidenced by the strategic reallocation of investment portfolios from fixed-rate to floating-rate PIBs and the non-rollover of maturing T-bills. As a result, repo borrowings were significantly reduced to PKR179bln in CY24 from PKR1.8trn in CY23. The DFI industry’s investment portfolio stood at PKR1.6trn, primarily comprising PKR1.1trn in federal government floating-rate PIBs, followed by PKR323bln in fixed-rate PIBs. During the period, the Central Bank maintained an expansionary monetary policy stance to stimulate economic growth and support aggregate demand. 

During CY24, the market share in terms of advances recorded a marginal increase of 29% (CY23: 29%). The market share of the company's investment also stood at 28% (CY23: 49%). On the deposit side, PKIC has performed well and clocked at PKR 39bln in CY24 (CY23: PKR 19.3bln

During CY24, markup earned witnessed decline to stand at PKR 202.9bln (CY23: PKR236.8bln). Attributable to a sizable decline in markup on investments to PKR 193.1bln (CY23: PKR 227.5bln). A significant portion of income is derived from income from investments, followed by income in loans and advances.  Markup expense decreased due to decreased exposure in OMO facility and clocked at PKR 200.6bln (CY23: PKR 230.7bln). Hence, the net markup income of PKIC witnessed a dip to stand at PKR 2.2bln in CY24 (CY23: 6bln). The Company’s asset yield marginally declined and stood to 25.9% (CY23: 26.4%). The cost of funds stood at 26% (CY23: 25.8%).  During 1QCY25, markup earned stood at PKR 18.1bln (1QCY24: PKR 52.1bln) whereas the net markup income witnessed improvement and clocked of PKR 4.3bln.

During CY24, non-markup income of PKIC stood at PKR 17.1bln (CY23: PKR 9.4bln), The Company holds a strategic investment in Meezan Bank Limited—Pakistan’s leading Islamic bank—where the Company holds a substantial equity stake of 29.91%. Dividend income from associates stood at PKR 16.3 billion in CY24 and PKR 4.1 billion in 1QCY25. Net markup income to total income decreased to 11.5% (CY23: 39.2%).  During CY24, PKIC recorded a net reversal of provisions of PKR 30mln during the period. Hence, the net profit of the Company stood at PKR 12.4bln (CY23: PKR 10bln), up 24% YoY.

As part of its strategic initiatives, PKIC’s Islamic Finance Division commenced business operations during CY24, reporting an advances portfolio of PKR 14.0bln and a total asset base of PKR 20.9bln by year-end. The division offers a diverse suite of Sharia-compliant financial products, catering to the varied needs of its clientele. Raqami Islamic Digital Bank Limited (RIDBL), a subsidiary of PKIC, has been granted a restricted license by the State Bank of Pakistan to commence pilot operations as an Islamic digital retail bank. PKIC holds a controlling equity stake of 67.50% in RIDBL. The initiative is expected to contribute to the transformation of the country’s banking landscape by promoting digital financial inclusion and expanding access to Sharia-compliant banking solutions. PKIC has undertaken multiple infrastructure development projects, primarily in the construction and power generation sectors.

The Company maintains credit risk manuals aligned with market trends, emphasizing pre- and post-disbursement monitoring. A structured credit approval process ensures prudent lending through appraisal, review, and approval. Credit proposals are assessed both individually and for their impact on the overall portfolio, using pricing matrices and internal obligor ratings. During 1QCY25 and CY24, the Company’s Corporate Banking Portfolio stood at PKR 52.6bln and PKR 51.3bln (CY23: PKR 53.8bln), respectively. The Company is strategically focused on financially strong and well-established entities, the portfolio reflects prudent lending practices. Notably, no clients were placed on the watch list, highlighting the effectiveness of the Board-approved risk management framework. Asset quality remained solid, with a gross infection ratio of 1.7% and NPLs at PKR 902.4mln.  During 1QCY25, the infection ratio remained unchanged at 1.7%.

The Company's asset base declined from PKR 1,083.7 billion in CY23 to PKR 553.3 billion in CY24 as PKIC realigned its investment strategy in the prevailing interest rate scenario. In CY24, Pak Kuwait’s investment book decreased sizably to PKR 451.7bln (CY23: PKR 988.4bln). Analysis of the investment book reveals that contribution by government securities significantly decreased and stood at PKR 436.8bln during CY24 (CY23: PKR 972.5bln) which is 97% of the total investment book. The mark-to-market gain on PIBs as of Dec-24 is PKR 3.6bln.  As of 1QCY25, investments stood at PKR 352.9bln. 

During 1QCY25, the Company's borrowing book reduced to PKR 349.6bln (CY24: PKR 456bln; CY23: PKR 1,026.5bln) mainly due to corresponding maturities of investments in government securities. A substantial portion of the Company’s borrowings is constituted by term finance facilities availed from commercial banks. In CY24, PKIC deposits grew sizably to PKR 39bln (CY23: PKR 19.27bln), and in 1QCY25, the Company’s deposit base stood at PKR 22.1bln. The increase in deposits is a positive sign for the funding base. Going forward, this will assist in attaining a favourable cost structure for the funding base. The Liquidity coverage ratio stood at 149.8% during CY24 (CY23: 87.31%).

Sustainable profitability continued to augment PKIC’s capitalization, in turn, risk absorption capacity. A strong equity base (CY24: PKR 46.7bln; 1QCY25: PKR 49.5bln; CY23 PKR 34.2bln), mainly comprising Tier-I capital provides comfort to absorb the impact of any adverse macroeconomic performance-related shocks. The Company’s capital adequacy stood at 41.3% during CY24 (1QCY25: 45.1%, CY23: 39.1%), remaining well above regulatory requirements. Materialization of growth plans may maximize capital utilization. The company’s equity to total asset ratio stood at 8.4% during CY24 (CY23: 3.2%).  The company’s equity comfortably exceeds the minimum capital requirement, reflecting a strong capital position.