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Promote investment in industrial and agro-based projects with high value addition, export potential, and maximum utilization of indigenous resources. Build and manage a diversified equity portfolio promising optimum return. Mobilize funds in a cost effective manner to meet our financing needs Achieve sustainable growth and be competitive in our commercial operations. Undertake investment advisory services and formation / participation in financing syndicates.

To excel in performance and play a leading role in the financial sector in Pakistan.

Saudi Pak aims at strengthening economic cooperation between the brotherly people of Saudi Arabia and Pakistan. To achieve this objective, we are committed to add value for our stakeholders through capital formation and investment related activities in Pakistan and abroad.

Chairman’s Statement

On behalf of the Board of Directors, I would like to present the 39th audited financial statements of Saudi Pak Industrial and Agricultural Investment Company Limited as well as consolidated accounts together with Auditors’ Report to Members and the Directors’ Report for the year ended December 31, 2020.

As Pakistan began to emerge from the economic challenges experienced during 2019, it was confronted by the global COVID-19 pandemic. The Government of Pakistan adopted measures such as nationwide lockdowns, social distancing and travel restrictions for containing the virus. This disrupted manufacturing, retail, transport and trade-related activities which had a severe effect on macroeconomic indicators of the country. For the first time in 68 years, Pakistan’s real GDP recorded a negative growth of 0.4 percent for FY20.  To support the economy, the federal government announced a stimulus package of Rs. 1.2 trillion, and the State Bank of Pakistan (SBP) slashed the policy rate from 13.25% to 7%, while simultaneously introducing various relief measures such as Loan Extension and Restructuring Package. Private sector credit to businesses maintained a downward trajectory for most of the year, and gross infection ratio of the banking sector touched 9.9% by Sep-20, from 8.6% as on start of year. Capital markets remained highly volatile.

 

Sultan M. Hasan Abdulrauf

In this challenging environment, the Company’s prime focus remained on capital preservation. Capital market positions were managed to minimize losses; stock portfolio was reconfigured and rationalized wherever possible. Company prudently made necessary provisions against mark to market revaluation deficits and non-performing loans. Cautious approach was adopted in project finance business given higher risk of defaults and uncertainty. Credit exposure was closely monitored and ninety percent of the performing portfolio was restructured as per SBP guidelines. Management efforts and regulatory relief measures prevented further build up of non-performing loans. Gross non-performing loans came down by 4% due to recoveries made in spite of prevailing market conditions, and net non-performing loans were brought down by 25%. Investment was built-up in default-risk free government securities under falling interest rate environment.

Company closely monitored the COVID-19 situation and invoked required actions to ensure the safety of its staff while providing uninterrupted operations. Business continuity processes were kept up-to-date in light of evolving fluid conditions. In accordance with SBP directives, shortened working hours were observed during the peak of the pandemic. Clustering at the workplace was avoided through placing employees on rotation via a roster system. Enhanced bio-safety measures such as disinfection tunnel, temperature checking, accelerated sanitization routine, strict facemask enforcement, and contactless attendance system, were put in place at Saudi Pak Tower and offices to prevent infection / transmission of disease. Ongoing awareness is promoted amongst the staff through emails / circulars.

During the year, the Company’s total assets grew by 30 percent to Rs. 48.2 billion mainly due to increased investment in high yielding government securities. As a result, Net Interest Income increased by 30 percent to Rs. 992.2 million. Income from Capital Markets increased by 86% to Rs. 383.7 million. Company prudently booked provisions of Rs. 340.3 million primarily against non-performing loans and advances. After-tax profit increased by 131 percent to Rs. 616.3 million. This is an excellent result achieved during a very difficult operating environment.

The Company’s overall risk profile including operating results and financial flexibility was reconfirmed by external Credit Rating Agency VIS who maintained Company’s long term entity rating at AA+ and short term rating at A-1+ with stable outlook.

Moving forward, with the economy showing nascent signs of recovery, Company is well-positioned to capitalize on available opportunities as and when they present themselves.  Focus will remain on the core business of project finance. The Board firmly supports management to pursue its plans.

In the end, I would like to express on my behalf and on behalf of the Board our sincere gratitude to the joint venture partners, the Kingdom of Saudi Arabia and the Islamic Republic of Pakistan for their unwavering support and State Bank of Pakistan as well as Securities Exchange Commission of Pakistan for their professional guidance. I am also thankful to the Board Members for their valuable contributions. Further, I congratulate and express my deep pride in the Saudi Pak’s team for this excellent performance amid challenging economic environment.

Sultan Mohammed Hasan Abdulrauf
Chairman

Our Milestones

View our yearly milestones below

Completion of Saudi Pak Tower

Acquisition of Standard Chartered Mercantile Leasing Company Limited
(Later Renamed Saudi Pak Leasing Company Limited)

Established Regional office at Karachi

Acquisition of Prudential Commercial Bank Limited
(Later Renamed Saudi Pak Commercial Bank Limited)

Established Regional office at Lahore

Setup Saudi Pak Insurance Company Limited

Established Regional office at Riyadh, Kingdom of Saudi Arabia

Setup Saudi Pak Real Estate Limited

Divestment of the shareholding in Saudi Pak Commercial Bank Limited

Divestment of Saudi Pak Insurance Company Limited

Our Affiliates

View our Distinguished Affiliates below

Official Website

Saudi Pak Real Estate Limited, a wholly owned subsidiary of Saudi Pak Industrial and Agricultural Investment Company Limited was established with prime objective of real estate development. Its activities include investment in properties both for investment and development purposes, property management services, investment in joint ventures and other related services.

Saudi Pak Real Estate Limited since its inception utilized its resources towards investment as well as development of properties. In addition to the strategy of earning capital gains the Company also made investments for regular rental income. Saudi Pak Real Estate Limited successfully completed its development project of “Saudi Pak Homes” at Lahore City earning good return on investment. Presently, the Company has investment in prime locations of Lahore and Islamabad. Future projects may also include joint venture with reputed firms.

In FY2019, the Company posted revenue of Rs. 35.34 million and net profit of Rs. 14.73 million. The net equity stood at Rs. 695.30 million with breakup value of Rs. 13.91 per share. The current portfolio and prudent utilization of available cash resources is expected to improve revenues and profitability of the Company in coming years.