TEXT: PAIR as the name connotes, it reflects the relationship of two brotherly countries Pakistan and Iran. Both countries not only shared mutual border but also enjoyed common culture as brotherly Islamic state. Keeping this in mind, and to foster the regional economic and social growth Memorandum of Understanding (MoU) was signed in March 2004 between governments of two countries to establish the PA?R being joint venture of two countries.
With continuous follow up of both countries and with support of relevant stakeholders, PA?R was incorporated in January 2007 as Public Unlisted Company under Companies Ordinance, 1984. The Company has been notified as Development Finance Institution (DFI) by the Ministry of Finance. Being DFI, PA?R is regulated by State Bank of Pakistan (SBP).
Authorized share capital of PA?R is Pak Rupees (Rs.) 10 billion whereas to meet the regulatory requirement, subscribed share capital is Rs. 6 billion. Government of Pakistan through Ministry of Finance holds 50% of shares whereas Government of Iran through Iran Foreign Investment Company (IFIC) holds 50% of shares. For good corporate governance, there are three separate layers of Shareholders, Board of Directors and Management which discharged their respective duties as per the regulatory requirements.
Equal representation is enjoyed by both shareholders as three directors are nominated by each shareholder. Affairs of the PA?R are being managed by professional management under the leadership of MD/CEO Mr. Abbas Daneshvar Hakimi Meibodi.
As per mandate, PA?R played a pivotal role in promoting industrial and economic activities by contributing in project finance, corporate and investment banking and green field projects. PA?R mainly contributed in power sector, textile industry and construction sector which are considered as back bone of economy. Besides this, PA?R also caters the sectors like food, electronics and home appliances, financial sector, chemical, media and steel. PA?R also offers its products to small and medium sized enterprises to bring them in banking network and to document the economy.
In line with current government’s policy to promote export sector, one of PA?R’s focus areas is to facilitate export oriented corporates of Pakistan. It can be gauged that out of the top 25 exporters of the country, PAIR has exposures of top five exporters. To incentivize the large scale manufacturer and for economic development, PAIR also lends under SBP subsidized scheme.
With an aim to promote green banking initiatives of SBP and DFI’s role in promotion of renewable energy, PAIR has now managed to successfully built healthy portfolio of renewable energy finance mainly solar energy systems.
PA?R caters the needs of entities having presence in southern part of country as well as northern part by having its branch office in Lahore. Besides its core activities of lending, PA?R also invested in different avenues like government securities, fixed income securities and capital market as per the risk appetite.
Abbas Daneshvar Hakimi Meibodi
Managing Director/CEO
Copyright Business Recorder, 2022
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