Press Release
VIS Assigns Initial Entity Ratings to Ghani Chemworld Limited
Karachi, January 19, 2026: VIS Credit Rating Company Limited (VIS) assigns initial entity ratings to Ghani Chemworld Limited (‘GCWL’ or ‘the Company’) of 'A-/A2' (Single A Minus/A Two). Medium to long term rating of 'A-' indicates good credit quality; protection factors are adequate. Risk factors may vary with possible changes in the economy. Short term rating of 'A2' indicates good likelihood of timely repayment of short-term obligations with sound short-term liquidity factors. The outlook on the assigned ratings is “Stable”.
Ghani ChemWorld Limited (GCWL), incorporated in July 2024 as a wholly owned subsidiary of Ghani Chemical Industries Limited (GCIL), was established to house the Calcium Carbide Project transferred from GCIL to GCWL under a Demerger/Merger Scheme sanctioned by the Honorable Lahore High Court on February 20, 2025. Under this arrangement, all assets, liabilities, concessions, licenses, incentives, and tax holidays associated with the Calcium Carbide Project were vested in GCWL.
The ratings incorporate sponsor support of the parent committing to bridging near-term cash flow gaps through advances and corporate guarantee support, ensuring operational and financial stability during the initial phase. Leveraging the Ghani Group’s longstanding industrial presence, sound governance framework, and strategic focus on import substitution, GCWL is positioned to become Pakistan’s first domestic producer of calcium carbide. Located in the Hattar Special Economic Zone and having recently achieved commissioning, the project offers import-replacement potential along with future export opportunities.
The ratings reflect GCWL’s strategic importance, demonstrated sponsor backing, and the Project’s long-term viability, while also recognizing the inherent risks associated with a greenfield venture, and upcoming debt-servicing requirements. Business prospects remain favorable given Pakistan’s heavy reliance on calcium carbide imports, availability of local raw materials, and the Group’s decade-long trading experience in the product. However, near-term pricing power may remain constrained due to competitive pressures and initial capacity overhang, making timely capacity ramp-up and penetration into regional export markets essential for achieving scale efficiencies. Ratings remain underpinned on successful commissioning of the project.
For further information on this rating announcement, please contact at 021-35311861-64 or email at info@vis.com.pk
Applicable Rating Criteria:
Corporate Rating
https://docs.vis.com.pk/docs/CorporateMethodology.pdf
VIS Issue/Issuer Rating Scale
https://docs.vis.com.pk/docs/VISRatingScales.pdf