Press Release
VIS Reaffirms Broker Fiduciary Rating of Pearl Securities Limited
Karachi, May 11, 2026: VIS Credit Rating Company Ltd. (VIS) has reaffirmed Broker Fiduciary Rating of Pearl Securities Limited (‘PSL’ or ‘the Company’) at ‘BFR3’. Rating of ‘BFR3’ denotes good fiduciary standards. Outlook on the assigned rating is ‘Stable’. Previous rating action was announced on January 16, 2025.
The rating signifies adequate business & financial stability, ownership & governance framework, while management & client services along with internal controls & regulatory compliance are considered sound.
Incorporated in 2000, Pearl Securities Limited (PSL) is engaged in provision of equity, commodities, money market & interbank foreign exchange brokerage services. Majority shareholding of the Company is vested with Government of Khyber Pakhtunkhwa-GPl Fund and Ms. Fatima Usman. Presently, the Company operates through its head office based in Karachi and six branches in the provinces of Sindh, Punjab and KP. The Company holds a Trading Right Entitlement Certificate (TREC) from PSX for Trading and Self-Clearing Services and a member of Pakistan Mercantile Exchange Limited (PMEX). External auditors of the Company changed from M/s Crowe Hussain Chaudhry & Co. Chartered Accountants to Junaidy Shoaib Asad Chartered Accountants. Auditors belong to category ‘B’ on the approved list of auditors published by the State Bank of Pakistan (SBP).
The assigned rating reflects the Company’s ownership and governance framework. However, the transition from an A-rated to a B-rated auditor, as per the SBP list of auditors, has weighed on the governance assessment. Re-appointment of an A-rated auditor may strengthen this framework. Notwithstanding this, the Company’s strong sponsor profile continues to support the rating, with the Government of KPK GPI Fund holding majority shareholding. Governance oversight is further supported by a five-member board comprising two government nominees and one independent director. Nevertheless, expansion of the board may further enhance governance effectiveness by enabling a more diversified composition across board committees. Management and client services are considered sound, supported by mobile and web-based trading platforms. However, the Company may consider revamping the Company’s website to enhance user experience and client engagement, while deployment of a fully integrated ERP platform could further strengthen operational processes. Contingency measures may be enhanced through outsourcing offsite backups to a third-party warehouse and increasing the frequency of disaster recovery exercises. Internal control framework of the Company may be further strengthened by broadening the scope of internal policies and increasing the frequency of internal audit reviews. Rating takes note of PSX order dated May 04, 2026, against which, as per management, the Company is in the process of filing an appeal. Going forward, ensuring compliance with all applicable regulations will be important from the rating’s perspective.
Assessment of the Company’s financial profile reflects an improvement in profitability, largely driven by a decline in finance costs following debt reduction, along with higher brokerage revenue reflecting a general uptick in the stock market. While the Company’s cost-to-income ratio weakened, it remains at a fair level. The liquidity profile is considered adequate, whereas market risk remains elevated. Although gearing and leverage indicators have improved considerably, they continue to remain on the higher side. Going forward, continued deleveraging of the balance sheet, strengthening of the liquidity profile, and management of market risk will remain imperative for the rating.
For further information on this rating, please contact at 021-35311861-64 or email at info@vis.com.pk.
Applicable Rating Criteria: Broker Fiduciary Ratings:
https://docs.vis.com.pk/Methodologies-2025/BrokerFiduciaryRating-Nov25.pdf
VIS Rating Scale
https://docs.vis.com.pk/docs/VISRatingScales.pdf