Author name: Web Desk

VIS Credit Rating Company Limited has announced an upgrade in the medium to long-term entity rating of Maple Leaf Cement Factory Limited (MLCF), raising it from A (Single A) to A+ (Single A Plus). The company’s short-term rating has been reaffirmed at A1 (A One), while the outlook remains Stable. This rating action reflects strong confidence in Maple Leaf Cement’s financial health, operational resilience, and long-term business sustainability. Strong Credit Quality and Liquidity Position: According to VIS, the upgraded medium to long-term rating indicates good credit quality backed by strong protection factors, while the reaffirmed short-term rating highlights a high likelihood of timely debt repayments and excellent liquidity. Maple Leaf Cement’s rating continues to benefit from its well-established position in Pakistan’s cement industry and its strategic integration within the broader Kohinoor Maple Leaf Group (KMLG), which provides additional operational and financial stability. Experienced Management and Solid Corporate Governance: VIS also credited the company’s experienced and long-standing management team, known for its deep industry knowledge. The presence of strong corporate governance structures, including active audit and remuneration committees, ensures high levels of transparency, accountability, and regulatory compliance. Operational Resilience Amid Industry Challenges: Despite facing subdued construction demand, volatile input costs, and fluctuating energy prices, Maple Leaf Cement has managed to maintain stable production levels. The company’s resilient profitability is supported by: • Strong pricing power• Ongoing cost optimization measures• Efficient energy utilization These factors have helped the company sustain healthy profit margins and positive cash flows, even in a challenging macroeconomic environment. Strengthening Financial Profile and Lower Leverage: From a financial perspective, VIS highlighted the company’s conservative capital structure, marked by: • Declining debt levels• A stronger equity base• Improving liquidity ratios Timely repayment of long-term borrowings and reduced dependence on short-term financing have significantly lowered leverage, while efficient working capital management has further strengthened liquidity buffers. In addition, robust internal cash generation and steady subsidiary income continue to support the company’s strong debt-servicing capacity. Outlook and Future Rating Prospects: VIS emphasized that the continued strengthening of Maple Leaf Cement’s financial profile will be a key factor in future rating actions. With a Stable outlook, the current rating suggests confidence in the company’s ability to maintain its solid performance in the near to medium term. The upgrade of Maple Leaf Cement’s rating to A+ is a strong endorsement of the company’s financial discipline, operational efficiency, and strategic market position. For investors and stakeholders, this move signals enhanced creditworthiness, lower financial risk, and long-term stability in one of Pakistan’s leading cement manufacturers.

KARACHI: Thousands of garment and textile workers in Karachi, producing clothes for major global brands including H&M, Zara, GAP, Mango, ASOS, C&A, NA-KD, NEXT, and IKEA, are suffering severe heat stress amid rising temperatures fueled by climate change, according to a damning new report by Climate Rights International (CRI).Released Wednesday, the report titled “They Don’t See What Heat Does to Our Bodies” reveals factory floors often hotter than outdoor temperatures, with poor ventilation, sealed windows, and intense machinery heat creating suffocating conditions. Workers report frequent fainting, dehydration, dizziness, nausea, and swollen limbs, yet production continues during extreme heatwaves.“Inside, it feels like my body is melting,” said Muhammad Hunain, a textile worker. Many avoid drinking water to prevent reprimands for frequent bathroom breaks, increasing risks of kidney damage and long-term health complications.Despite earning just Rs32,000–40,000 ($115–145) monthly, workers face wage deductions or dismissal threats if they stop due to illness. Fainting incidents often result in unpaid leave without medical care.The report links affected factories to the named international brands through public supply-chain disclosures. Most brands are signatories to the International Accord on health and safety, yet only NEXT has explicit heat-risk guidelines for suppliers. Others reportedly rely on general standards that ignore extreme heat as a hazard.Workers and researchers accuse factories of temporarily improving conditions—adding fans, providing clean water—only during brand audits.CRI warns Karachi’s garment sector is on the frontlines of climate change, with Pakistan warming faster than the global average. Without urgent action—better ventilation, heat protocols, paid sick leave, and enforceable laws—the human toll will worsen.One worker, Shaista, summed it up: “We’re not asking for luxury… just air to breathe and water to drink.”

KARACHI: State Bank of Pakistan Governor Jameel Ahmad announced that Pakistan’s external debt-to-GDP ratio has improved significantly to 26% in FY25 from 31% a few years ago, mainly due to strong growth in workers’ remittances and a larger economy.Speaking on the sidelines of “Pakistan Women Entrepreneurship Day 2025”, he revealed that total foreign debt has remained stagnant at June 2022 levels for the past three years, with all new external financing used solely to repay maturing obligations rather than building reserves.Remittances hit a record $38.3 billion in FY25, up 27% from $30.3 billion in FY24, and are projected to cross $40 billion in FY26. The GDP has expanded to $407.1 billion from $375 billion in FY22.The Governor reiterated that the current account deficit will stay within the projected 0–1% of GDP despite rising imports ($5.2 billion in November 2025). SME financing rose by Rs150 billion to Rs700 billion in the last year, keeping the sector on track to reach the Rs1.1 trillion target in five years.

A major financial scandal has surfaced in Khyber Pakhtunkhwa after a departmental inquiry exposed a Rs106.04 million fraud within a World Bank-funded education project. The investigation revealed deep-rooted internal control failures, suspected staff collusion, and serious lapses in banking verification. The inquiry was launched when the project director of the Khyber Pakhtunkhwa Human Capital Investment Project (KP-HCIP) flagged unusual withdrawals from the project’s bank account. KP-HCIP, backed by a Rs26 billion loan, was designed to enhance education quality in Peshawar, Haripur, Nowshera, and Swabi, and was later expanded to support flood-affected districts. According to the inquiry committee, the fraud was carried out by exploiting cheque books that had already been fully used. New cheque books were allegedly obtained illegally using a fake authority letter, enabling unauthorized withdrawals. Investigators discovered that a man with no connection to the project managed to collect four cheque books without the required approval from official signatories. The committee pointed to a former project accountant—who still held project equipment and had extensive knowledge of internal systems—as the primary suspect behind the scheme. The inquiry also highlighted significant negligence on the part of the project’s financial management specialist and internal audit officer. It further criticized the National Bank of Pakistan, along with verification systems of FBR and Faysal Bank, for failing to detect irregularities that facilitated the fraudulent transactions. To move the case forward, investigators have recommended lodging an FIR, placing all suspects on the Exit Control List (ECL), and forwarding the matter to anti-corruption authorities. They also advised that a forensic audit be conducted by an independent chartered accountancy firm, covering the period from the project’s inception up to September 2025. The education department has been urged to tighten internal controls and strengthen financial oversight across all components of the project to prevent further losses and restore accountability.

Pakistan’s largest family Takaful operator moves a step closer to listing as it plans to raise capital for digital growth, branch expansion, and brand development. Pakistan’s first dedicated Islamic family Takaful company, Pak Qatar Family Takaful Limited, has officially kicked off its journey toward becoming a publicly listed company. The company has placed its draft prospectus on the Pakistan Stock Exchange for public review, inviting feedback ahead of its much-anticipated Initial Public Offering (IPO). According to the announcement, stakeholders and investors can submit their comments on the draft prospectus until December 10, 2025, marking a key regulatory milestone before the IPO launch. Market Leader in Pakistan’s Family Takaful Sector: Pak Qatar Family Takaful currently dominates the family Takaful segment in Pakistan, holding an impressive 44% market share. In the niche of dedicated Takaful products, the company commands an overwhelming 90.47% share, reinforcing its leadership in Shariah-compliant insurance solutions. Within the broader life insurance industry, the company controls 6.6% of the total market, highlighting its growing footprint beyond just Islamic insurance. IPO Structure and Share Offering Details: Here is a quick breakdown of the IPO structure: • 75% of the issue (22.5 million shares) will be offered through the Book Building Method • Floor price: PKR 10 per share • Price band cap: Up to 40% (maximum PKR 14 per share) • 25% of the issue (7.5 million shares) will be allocated to retail investors at the final strike price • The retail portion will be fully underwritten, ensuring investor confidence and liquidity Leading brokerage house Arif Habib Limited has been appointed as the lead manager for the IPO. How Pak Qatar Plans to Use IPO Proceeds: Pak Qatar Family Takaful has outlined a clear growth strategy for utilizing the funds raised through the public offering. The capital will be directed toward strengthening both operational and digital capabilities, including: • Upgrading IT infrastructure and core insurance software • Expanding and renovating branch network across Pakistan • Human resource development and talent enhancement • Brand-building and national marketing campaigns • Boosting digital sales platforms and customer experience These investments are expected to significantly improve service delivery, operational efficiency, and the company’s competitive edge in the rapidly expanding Islamic insurance market. Strengthening Position in Pakistan’s Growing Takaful Industry: With rising awareness of Shariah-compliant financial products and increasing demand for ethical insurance solutions, Pakistan’s Takaful industry is witnessing steady growth. Pak Qatar Family Takaful aims to leverage the IPO to further fortify its financial resilience, technological base, and market leadership. The planned listing is expected to provide new growth momentum to the company while offering investors a rare opportunity to participate in the country’s largest family Takaful operator. Pak Qatar Family Takaful’s move toward a public listing reflects strong confidence in Pakistan’s Islamic finance sector. As the public comment period remains open until December 10, 2025, all eyes are now on the upcoming IPO, which is poised to become one of the most significant listings in the Shariah-compliant financial services space.

Karachi: The Pakistan Stock Exchange (PSX) has removed Dewan Farooque Motors Limited (DFML) from its list of stocks that can be traded in futures contracts. This means investors can’t start new 90-day futures deals for DFML shares anymore. The decision comes after DFML was labeled “non-compliant” in a notice on December 1. In simple terms, futures contracts are like agreements to buy or sell shares at a set price in the future. DFML was allowed for these before, but now it’s off the list because it doesn’t meet the rules anymore. However, any ongoing deals—like those ending in December 2025, January 2026, or February 2026—will still go on until they finish. PSX’s General Manager Jawad H. Hashmi shared this update in a notice to all traders, regulators, and companies involved. He asked everyone to take note and adjust their plans. This change aims to keep trading fair and follow strict guidelines. Investors in DFML should check with their brokers for what this means for their holdings. The full notice is on the PSX website.