Fauji Fertilizer Company Strives For Shariah Compliance After Merger

Islamabad: Fauji Fertilizer Company (FFC) is making strides toward Shariah compliance following its merger with FFBL. The June 2025 financials reveal FFC has successfully reduced its non-compliant investments to total assets ratio below the 33% threshold. However, non-compliant income remains an obstacle to full compliance. Analysts anticipate that projected revenue growth in future quarters, combined with a reduced proportion of non-compliant income, will facilitate the firm’s progress towards this goal.

Separately, Askari Bank Limited (AKBL) is also pursuing Shariah compliance, aiming for 30% of its branches to comply in 2025 and full transition by the end of 2027. Islamic banking contributed approximately 16% to the bank’s pre-tax profit in 2024.

Financial analysts at JS Global have adjusted their projections based on the June 2025 financial statements, setting a revised target price of Rs490 for June 2026. This implies a potential total return of 22%, encompassing a projected dividend yield of 10% for 2026.