Press Release
VIS Reaffirms Entity Ratings of Pak China Investment Company Limited
Karachi, June 16, 2026: VIS Credit Rating Company Limited (VIS) has re-affirmed the entity ratings of Pak China Investment Company Limited (‘PCICL’ or the ‘Company’) at ‘AAA/A1+’ (Triple A/A One Plus). Medium to long-term rating of ‘AAA’ denotes highest credit quality; the risk factors are negligible, being only slightly more than for risk-free Government of Pakistan’s debt. Short-term rating of ‘A1+’ denotes strongest likelihood of timely repayment of short-term obligations with outstanding liquidity factors. Outlook on the assigned ratings is ‘Stable’. The previous rating action was announced on June 30, 2025.
PCICL was incorporated in Pakistan as a public limited Company in 2007 and operates under a Joint Venture (JV) agreement between the Government of Pakistan (GoP) and People’s Republic of China (PRC); shares of PCICL are equally held by GoP through Ministry of Finance (MoF) and PRC through China Development Bank (CDB). PCICL plays a strategic role having been established to act as a bridge for promotion of bilateral trade and investment between the two sponsor sovereigns and with an objective of financing economically viable and technically feasible projects. Entity ratings assigned to PCICL are underpinned by its strategic importance, the economic strength of its sponsors and high expected sovereign support, if needed. The latest sovereign rating of Pakistan stood at B- (Fitch Ratings and S&P Global) and Caa1 (Moody’s). The latest sovereign rating of China stood at A+ (S&P Global), A (Fitch Ratings) and A1 by Moody’s.
Profitability has declined during the period under review due to pressure on margins, balance sheet contraction, and higher costs, though recovery is expected from planned growth in core lending activities. In contrast, asset quality has improved due to reduced non-performing exposures and stronger provisioning. The investment book has shifted towards higher-yield instruments while maintaining a controlled risk profile through, matched funding structures.
Capitalization remains strong, supported by sound internal capital generation and sponsor backing. Liquidity is adequate, with a stable funding base. Ratings remain sensitive to sustained improvements in asset quality, particularly further reduction in non-performing exposures and concentration risk, as well as continued strengthening of profitability through stable margin recovery and business growth.
For further information on this ratings 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
https://docs.vis.com.pk/Methodologies-2026/FI-Methodology-26.pdf
VIS Issue/Issuer Rating Scale
https://docs.vis.com.pk/docs/VISRatingScales.pdf