PACRA Affirms Stability Rating of Pak Qatar Cash Plan Under Islamic Cash Fund

Karachi: The Pakistan Credit Rating Agency Limited (PACRA) has maintained the stability rating of the Pak Qatar Cash Plan under the Pak Qatar Islamic Cash Fund at AA(f), with a stable outlook. The rating signifies a low-risk profile, reflecting the Fund’s strategy to optimize investor returns through Shariah-compliant investment opportunities.

According to Pakistan Credit Rating Agency Limited, the Fund’s assets under management stood at PKR 3,963 million as of the end of September 2024, with a diversified investment portfolio. Approximately 58% of the Fund’s investments were in AA rated avenues, 39% in government securities and AAA rated avenues, and 3% in AA- rated avenues. The remainder was invested across other categories, with the majority held in cash and placements in banks, representing about 67% of total investments. Sukuk and commercial papers, both government and corporate, accounted for 21% of the investments.

The weighted average maturity (WAM) and the duration of the Plan were both reported at 38 days, effectively mitigating exposure to credit and interest rate risks. However, the unit holding pattern highlights that around 69% of the Fund is concentrated among the top ten investors, presenting a potential risk of redemption pressure.

The report indicates that any significant changes in the investment policy or alterations to the rating criteria could affect the current ratings, emphasizing the importance of stability in maintaining investor confidence.

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