PACRA Maintains Stability Rating of “Pak Qatar Monthly Income Plan” under Pak Qatar Islamic Income Fund

Lahore, June 03, 2023 (PPI-OT): Pak Qatar Islamic Income Fund (or the "Fund") is an open-ended shariah compliant Income fund. The Fund falls under medium risk profile. The objective of the Fund is to maximize the investor's return by investing in shariah-compliant authorized investable avenues. The under mentioned plans are initially offered under the umbrella of the Fund i) Pak-Qatar Monthly Income Plan ii) Pak-Qatar Monthly Income Plan and iii) Pak-Qatar Khalis Bachat Plan. Subsequently, additional plans may also be launched.

Pak-Qatar Monthly Income Plan (PQMIP or the "Plan") focus on corporate and High Net Worth investors who prefer monthly dividend under a stable Income category. The objective to invest in medium to long-term income instruments as well as short-tenor money market instruments to generate superior, long-term, risk-adjusted returns in accordance with Shariah practices. The term of the Plan is perpetual. As per the investment policy of the Plan, the Plan can't invest in below single A rated avenues. While as for as asset allocation is concerned, the Plan can invest up to 100% in shariah-compliant Govt. securities and cash at Bank. The Plan may change the dividend frequency at its own discretion for the benefit of the unit holder with prior intimation.

Currently, the Plan had invested ~43.5% cash in banks majority rated A, ~48.2% in Corporate Sukuks rated A+ and above. Whereas, ~5.8 % in 5 year GoP Ijarah Sukuk at the end Mar’23. The duration of the Plan stood at 40 days at the end Mar’23, exposing low interest rate risk. The WAM of the Plan stood at 701days at the end Mar’23, exposing high credit risk. The credit risk is high due to investment in GoP Ijarah Sukuks. The unit holding pattern of the Plan stood at 99.6% concentrated which is all related party holding, limiting redemption pressure.

Going forward, the Plan intended to diversify its investment in A and above rated avenues and will ensure to meet the given criteria over the short horizon. Any material changes in the investment policy or the devised rating criteria for the assigned rating would have an impact on the rating.

For more information, contact:


The Pakistan Credit Rating Agency Limited (PACRA)

Awami Complex, FB1, Usman Block New Garden Town,

Lahore, Pakistan

Tel: +92-42-5869504-6

Fax: +92-42-5830425