. .

Pakistan Kuwait Investment Company

May 21 - Jun 03, 2001

The Mission

To achieve excellence in all standards of performance by

Creating value for our customers
Optimizing returns to our shareholders
Attracting, motivating and retaining top quality professionals
Pursuing our corporate values

Business Principles

To maintain highest level of ethical standards in all dealings
To fulfil our social responsibility and contribute to the Pakistan economy
To be one window solution provider to corporate entities seeking innovative investment banking services
To provide value and personalized service to our corporate customers
To be sincere to all employees, customers, business associates and all our stakeholders

Company Snapshot

Name of the Company

Pakistan Kuwait Investment Company (Pvt.) Ltd.

Date of Incorporation

March 17, 1979

Corporate Status

Development Finance Institution


State Bank of Pakistan 50%
Kuwait Investment Authority 50%

Board of Directors

Comprises six members
three from Pakistan and three from Kuwait

Registered Office

Finance & Trade Centre, 4th Floor
Tower 'C' Shahrah-e-Faisal
Karachi - Pakistan


Pak Kuwait is Joint Venture between the governments of Pakistan and Kuwait. State Bank of Pakistan (SBP) holds 50 per cent shareholding of Pak Kuwait on behalf of Government of Pakistan and the remaining 50 per cent is held by Kuwait Investment Authority (KIA) on behalf of Government of Kuwait. Pak Kuwait was established in 1979 with a paid up capital of Rs. 250 million contributed equally by the two joint venture partners. Over the years, Pak Kuwait has formed strong business relationship with institutions in Pakistan and the Gulf region. The active involvement of Pak Kuwait's Board members from Kuwait also points to the fact that they value Pak Kuwait's success.

The present top tier management have a very successful track record at Pak Kuwait and have contributed in strengthening the organization in the last ten years. Being the largest capitalized institution in the investment banking sector in Pakistan, the company is in a strong position to withstand any risks that are inherent in the Pakistani market. In the Nineties, Pak Kuwait has been one of the best performing financial institutions in terms of profitability and efficiency and was the only financial institution rated as AAA in 1999 by DCR-VIS Credit Rating Co. Ltd. The AAA rating has been reaffirmed by JCR-VIS in the year 2000. In order to diversify its operations and capture a niche market, Pak Kuwait has also acquired significant shareholding in Al-Meezan Investment Bank Limited in Pakistan, operating purely on Islamic principles.

Core Functions of the Company

Corporate Finance & Marketing

The Corporate Finance & Marketing department is responsible for all borrowing/non-borrowing activities and relationships. The activities undertaken by the department are:

Soliciting, developing and maintaining names and relationships with assigned portfolio
Selling credit/non-credit based products and services
Maximizing profitability to meet the financial targets/goals.
Ensuring adherence/achievement of revenue targets
Keeping a very close watch on the dynamics of the market risk parameters
Liaison with the Risk Management Department in screening of target markets and customers.

The scope of work requires the operation of a clean and acceptable asset portfolio and adhering to Pak-Kuwait's credit and operational policies and procedures.


The treasury department has been managing the overall assets and liabilities of the Company. Major activities undertaken are:

Effective management of assets and liabilities of the Company, and maximization of profit by mismatching and gapping techniques.
Arranging funds for financing the Company's assets.
Handling foreign currency transactions.
Structuring swap deals in foreign currency deposits versus Pak-Rupee financing involving various institutions including corporate and multinational banks in Pakistan and abroad.
Disbursement of PKR loan against lien on deposits and bank guarantees
Acceptance and placement of local currency deposits
Trading in government securities
Investment in government securities

Capital Markets

Capital Markets Department is responsible for all transactions related to equity investments of the Company. The activities undertaken by the department are:

Maintain a well diversified equities portfolio with major portion invested in fundamentally strong companies with historical track record of stable dividend payout
Analyze companies offering their shares in Pre IPOs or IPOs.
Contribute to the profitability of the Company by earning capital gains and dividend income
Monitor the economic environment and continuously rebalance the portfolio
Maintain the risk return profile of the portfolio
Evaluate scrips listed on the bourses on continuous basis and identify trading opportunities
Aggressively exploit any short term inefficiencies in the market

Support functions

To support the core business functions the Company has credit administration, risk management and an IT department. The credit administration department is responsible for ensuring that the credit process management is in conformity with the guidelines. The department ensures that conditions precedent to disbursement are fulfilled and adequate security arrangements are in place.

The risk management department is responsible for providing support to the management in formulating business strategy through development of a niche target market and identification of industries strategically important to the economy and to the companies in which Pak-Kuwait would like to grow and maintain its presence. In addition, it supports the corporate finance & marketing initiatives by providing first level of credit evaluation on all proposals. The risk management department is also responsible to ensure compliance to legal and regulatory framework in the country and assess on a continuing basis the possible implication of the business strategy and portfolio quality.

The IT department has been instrumental in keeping Pak-Kuwait up to date with the IT trends in the financial sector. The Company has an integrated system which has mechanized and standardized the operating procedures in the Company.