Islamic Republic of Iran 44th Anniversary of the Islamic Revolution: PAIR Investment Co. Ltd.

TEXT: PAIR symbolizes the relationship of two brotherly countries Islamic Republic of Pakistan and Islamic Republic of Iran. Both countries not only shared mutual border but also enjoyed common culture as brotherly Islamic state.

Keeping this in mind and to foster the regional economic and social growth, Memorandum of Understanding (MoU) was signed in March 2004 between governments of two countries to establish the PAIR being joint venture of two countries.

With continuous follow up of both countries and with support of relevant stakeholders, PAIR was incorporated in January 2007 as Public Unlisted Company under The Companies Ordinance, 1984 (Now The Companies Act, 2017). The Company has been notified as Development Finance Institution (DFI) by the Ministry of Finance. Being DFI, PAIR is regulated by State Bank of Pakistan (SBP).

PAIR is committed for developing the economic relationship between Pakistan and Iran through investment into projects in Pakistan and enhancing the bilateral trade by providing the most professional and innovative services to our customers.

PAIR focus on providing a range of products and services to customers in a manner which creates value for them and promotes investment flows and trade between the two countries. To promote bilateral trade, PAIR is engaging with concerned authorities of both countries and also participated in Pak Iran Joint Economic Commission.

As per mandate, PAIR played a pivotal role in promoting industrial and economic activities by contributing in project finance, corporate and investment banking and green field projects.

PAIR mainly contributed in power sector, textile industry and construction sector which are considered as back bone of economy. Besides this, PAIR also caters the sectors like food, electronics and home appliances, financial sector, chemical, media and steel. PAIR also offers its products to small and medium sized enterprises to bring them in banking network and to document the economy. PAIR offers advisory services to its clients and also undertakes services of underwriting and trusteeship.

In line with current government’s policy to promote export sector, one of PAIR’s focus areas is to facilitate export oriented corporates of Pakistan. It can be gauged that PAIR has exposures in top exporters of Pakistan. To incentivize the large scale manufacturer and for economic development, PAIR also lends under SBP subsidized scheme.

With an aim to promote green banking initiatives of SBP and DFI’s role in promotion of renewable energy, PAIR has now managed to successfully built healthy portfolio of renewable energy finance mainly solar energy systems.

PAIR caters the needs of entities having presence in southern part of country as well as northern part by having its branch office in Lahore. Besides its core activities of lending, PAIR also invested in different avenues like government securities, fixed income securities and capital market as per the risk appetite.

As of 31 December 2022, total assets stood up at Rs. 32.7 billion which majorly comprises of Investment amounting to Rs. 21 billion whereas Loan and Advances consists of Rs. 9.4 billion. These assets are financed from shareholder equity and reserves amounting to Rs. 9.7 billion whereas 20 billion is borrowed from other financial institutions including borrowing from SBP.

PAIR is also able to mobilize deposits of more than Rs. 1.7 billion from different institutions and high net worth individuals. On the revenue side, gross revenue for the year 2022 is Rs. 3.3 billion that comprises 97% of mark up income whereas 3% as non mark up income in the form of dividend, capital gain fees and commission income. Profit before tax for the period ended is Rs. 654 million.

With an aim to support real economy, PAIR also value added in shareholder wealth in the form of Dividend on regular basis. PAIR also contributed in national exchequer in the form of taxes and fees.

Giving back to the country and the communities that we serve is part of PAIR’s agenda. As corporate social responsibility (CSR), PAIR donated in health and educational institutes over the period of time. Some of the notable names to whom we gave donations are The Kidney Center and Patient Aid Foundation. During the devastating flood season, PAIR contributed for rehabilitation of flood affectees. Moreover, as employer, PAIR believes in gender equality that is also witnessed by healthy representations of women in management.

These achievements of PAIR would not be possible without continuous support and guidance of esteemed shareholders, directors and regulators. I take this opportunity to express gratitude to our esteemed shareholders and directors who continue to entrust their confidence on PAIR. I would also like to place on record my appreciation for the efforts of our regulators SBP and SECP.

Abbas Daneshvar Hakimi Meibodi, Managing Director/CEO

Copyright Business Recorder, 2023