Press Release
VIS Reaffirms Entity Ratings of Pak Oman Investment Company Limited
Karachi, June 30, 2026: VIS Credit Rating Company Ltd. (VIS) has reaffirmed entity ratings of Pak Oman Investment Company Limited (‘POICL or the Company’) at ‘AA+/A1+’ (Double A Plus/A One Plus). The long-term rating of ‘AA+’ signifies high credit quality; protection factors are strong. Risk is modest but may vary slightly from time to time because of economic conditions. The short-term rating of ‘A1+’ signifies strongest likelihood of timely repayment of short-term obligations with outstanding liquidity factors. Outlook on the assigned rating is ‘Stable’. Previous rating action was announced on June 30, 2025.
POICL established in 2001 operates as a joint venture between the Government of Pakistan (GoP) and the Sultanate of Oman (SO)). In addition to its main office in Karachi, POIC also maintains a branch office in Lahore and representative offices in Islamabad, Gwadar, and Muscat. POIC is categorized as a Development Financial Institution (DFI) by and under the regulatory oversight of the State Bank of Pakistan (SBP). The latest sovereign rating of Pakistan stood at B- (Fitch Ratings and S&P Global) and Caa1 (Moody’s). Moody’s upgraded the Sultanate of Oman’s sovereign rating from ‘Ba1’ to ‘Baa3’ with a ‘Stable’ outlook in July 2025, Fitch Ratings upgraded it from ‘BB+’ to ‘BBB-’ with a ‘Stable’ outlook in December 2025 and S&P reaffirmed it at ‘BBB-’ with a stable outlook in 2025.
The ratings assigned to POICL reflect the support from its sovereign shareholders, underpinned by its strategic importance as a bilateral development financial institution jointly owned by the Government of Pakistan and the Oman Investment Authority. The ratings also consider the Company’s strong capitalization, sound liquidity profile, and stable governance framework under the regulatory oversight of the State Bank of Pakistan.
The Company's financial position remained robust, supported by a strong capital base, sound liquidity, and continued improvement in asset quality due to decline in non-performing loans and high provisioning coverage, reflecting adequate loss absorption capacity. The Company continued to expand its Advances portfolio in a measured manner while maintaining prudent credit standards. With respect to the financial performance, the profitability improved materially in CY25, driven by a wider net interest margin along with higher investment-related income; however, earnings remain sensitive to interest rate volatility and have moderated in 1QCY26. The Capital Adequacy Ratio moderated in line with higher risk-weighted assets; buffers remain sufficient to absorb impact from any adverse developments. Ratings take into account sovereign support, improving asset quality trends, and the Company’s ability to maintain strong capitalization and liquidity buffers amid interest rate and balance sheet fluctuations.
For further information on this rating announcement, please contact at 021-35311861-64 or email at info@vis.com.pk
Applicable Rating Criteria:
Government Supported Entities:
https://docs.vis.com.pk/Methodologies-2025/GSEntities.pdf
Financial Institutions Rating:
https://docs.vis.com.pk/Methodologies-2026/FI-Methodology-26.pdf
Rating Scales & Definitions:
https://docs.vis.com.pk/docs/VISRatingScales.pdf