Press Release
VIS upgrades Broker Fiduciary Rating of Pearl Securities Limited
Karachi, November 10, 2026: VIS Credit Rating Company Ltd. (VIS) has upgraded Broker Fiduciary Rating of Pearl Securities Limited (‘PSL’ or ‘the Company’) from ‘BFR3’ to ‘BFR3+’. Rating of ‘BFR3+’ denotes good fiduciary standards. Outlook on the assigned rating is ‘Stable’. Previous rating action was announced on May 11, 2026.
The rating signifies sound ownership & governance, management & client services, internal controls & regulatory compliance, as well as adequate business & financial sustainability.
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 Fatima Usman in her individual capacity. Presently, the Company operates through its head office 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 is also a member of Pakistan Mercantile Exchange Limited (PMEX). External auditors of the Company were 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. Change in external auditors from C-rated to a B-rated auditors has weighed positively towards the on the governance framework. 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 seven-member board including two government nominees. PSL has three Board committees, namely Audit, Investment, and HR; the latter two Committees have been expanded to four and three members, respectively, from two members each. This expansion 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, though there is room for further improvement. Like-wise, contingency measures may be enhanced through outsourcing offsite backups to a third-party warehouse and increasing the frequency of disaster recovery exercises; as also broadening the scope of internal policies and increasing the frequency of internal audit reviews may further strengthened the internal control framework. A Research Advisor with an established track record has been added to strengthen PSL’s research function. PSL launched its Islamic Window Operations in September 2026, as well as seeking licenses for services as consultant to the issue and underwriting for diversification. Rating takes note of PSX order dated May 04, 2026 regarding violations and penalization, 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.
The Company’s financial profile reflects growth in operating revenues and improved profitability, largely driven by lower finance costs following debt reduction and higher brokerage revenue amid increased activity in the stock market. Although the cost-to-income ratio weakened, it remains at an acceptable level. Liquidity has improved and is considered adequate, while market risk exposure remains elevated. Capitalization has strengthened significantly, supported by lower gearing and leverage, reinforcing the overall financial risk profile. Maintaining sound capitalization and adequate liquidity, managing market risk effectively, and improving operational efficiency are the important considerations 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