July 17, 2026 (MLN): The Pakistan Credit Rating Agency Limited (PACRA) has maintained National Rural Support Programme's entity ratings at 'A' for the long term and 'A1' for the short term, with a 'Stable' outlook.
The ratings had previously been upgraded on 15-Jul-25 to the same levels.
NRSP has established itself as Pakistan's largest Rural Support Programme and one of the country's leading microfinance and development institutions.
The Company operates through two complementary pillars: a microfinance arm extending small loans to low-income households to generate sustainable markup income, and a development arm implementing donor- and government-funded programmes in housing, education, and livelihoods.
As of Mar'26, NRSP served over 3.87m low-income households through 257,671 Community Organizations, reflecting extensive grassroots outreach.
During FY25, the Company further strengthened its market position, supported by sound governance and prudent risk management, with an experienced Board and management team providing strategic direction and operational discipline.
Pakistan's microfinance ecosystem comprises MFBs, MFIs, RSPs, and FinTechs, with MFBs accounting for around 77% of the sector's Gross Loan Portfolio.
During CY25, the operating environment improved on the back of easing inflation, lower interest rates, exchange rate stability, and positive GDP growth, though the sector continues to face elevated credit risk, weak capitalization, and concentration in agriculture and livestock financing, PACRA noted.
Against this backdrop, NRSP maintained a strong market position, supported by sustained financing growth, healthy asset quality, and effective risk management, remaining Pakistan's second-largest microfinance provider by active borrowers with an estimated 7% share of the industry's Gross Loan Portfolio.
Financially, NRSP's profile strengthened during FY25, underpinned by improved profitability and expansion in its financing portfolio.
Gross micro-credit advances increased by around 32.7% to Rs31.7bn (FY24: Rs23.9bn), while total income grew by around 20% to Rs16.9bn (FY24: Rs14.1bn), primarily driven by higher net markup income.
Consequently, profit after tax increased by around 34% to Rs2.9bn (FY24: Rs2.2bn). Asset quality strengthened, with the infection ratio improving to around 1.7% (FY24: around 2.4%).
The investment portfolio remained concentrated in subsidiaries, term deposits, bank placements, and investment properties, limiting market risk exposure, PACRA said. Investments in subsidiaries increased to Rs4.4bn (FY24: Rs3.7bn), while total investments represented around 9.6% of total assets.
The funding profile remained diversified across commercial banks, development finance institutions, and multilateral agencies, with borrowings increasing to Rs21.6bn (FY24: Rs18.2bn), while equity strengthened to Rs18.8bln (FY24: Rs15.8bln), supported by internal profit generation.
During 9MFY26, the financing portfolio expanded significantly to Rs72.7bn, profit after tax increased to Rs3.5bn, and borrowings rose to Rs62.1bn, primarily reflecting funding obtained under government-backed on-lending schemes, while equity strengthened further to Rs22.2bn.
Going forward, the ratings remain dependent on NRSP's ability to preserve asset quality, sustain profitability, maintain adequate capitalization amid rapid balance sheet expansion, and effectively manage risks associated with its growing government-supported financing portfolio.