Annual Report 2024

Dar Al-Maal Al-Islami Trust constraints. The fiscal deficit continued to widen due to limited revenue growth and high debt servicing costs, while the Pakistani Rupee experienced sustained depreciation throughout 2023 and early 2024. On the external front, Pakistan significantly reduced its current account deficit, which declined by 94.8% year- on-year to just $0.2 billion by March 2024, down from $3.7 billion a year earlier. This improvement was achieved through strict import controls introduced in mid-2023 and modest export—and steady remittance inflows. Foreign exchange reserves rose to $14.6 billion by the end of May 2024, strengthening Pakistan’s buffer against external shocks and contributing to a more stable exchange rate environment. GDP growth in 1HFY25 stood at 1.5%, with agriculture showing no momentum, industry showing negative growth with Large-scale manufacturing having shown contraction. Pakistan’s move was re-engaging with IMF to secure fresh financial support. The IMF program aimed to shore up foreign reserves, curb inflation, and support fiscal reforms while signalling policy continuity to global investors. Looking ahead to 2025, Pakistan’s economic outlook remains promising. If the reforms agenda is successfully implemented, the country could lay the groundwork for a more sustainable and inclusive economic recovery. ● Review of Operations Despite the challenging business environment, tight monetary policies and prominent level of uncertainties, Alhandu Lillah , the Group achieved a net profit after tax attributable to equity participants of $ 11.5 million compared with $ 7.5 million in 2023. The total Group’s net profit after tax for 2024 of $30.6 million remains in line with 2023 of $ 31 million. The operating income reported in 2024 was $ 326 million, i.e., 9% higher than 2023’s operating income of $ 301 million. Similarly, 2024’s net profit before tax was $ 122 million 20% higher than 2023’s of $ 102 million. Trust capital has improved from $163.5 million at the end of 2023 to $175million at December 2024. Similarly, the value of each equity participation Unit has increased from $41.38 in 2023 to $ 44.26 in December 2024. The Group ‘s reliable performance in 2024, reflects our adherence to our resilience, good assets quality standards, investment diversification, operating within an acceptable risk parameter, and elevated levels of liquidity aiming to enhance profitability to Unitholders. Ithmaar Holding BSC (“Ithmaar”) is regulated by the Central Bank of Bahrain and its shares are listed on the Bourse of Bahrain and Dubai Financial Market. Ithmaar is a key subsidiary of the Group with 46.49% interest. In 2024 Ithmaar reported a profit attributed to shareholders of $10.46 million compared to a loss of $ 9.31 million in 2023. The improvement in profit is attributed to the income from investments which increased from $ 364 million in 2023 to $ 472 million in 2024, which was primarily attributed to higher fair valuation of investment securities. In 2025, in cooperation with the Group, Ithmaar has started working on various strategic initiatives to strengthen the Group’s consolidated equity base (‘Equity Strengthening Plans’). These initiatives include, amongst other initiatives, among which: ▪ Issuance of Tier 1 capital instrument (T1) subject to regulatory and shareholders’ approvals. ▪ Continuing regulatory support on matters related to capital and liquidity requirements on licensed group entities. ▪ Consideration of sale of non‐core assets, subject to further review, negotiations, and necessary regulatory approvals. Faysal Bank Limited, Pakistan (“FBL”) which is 66.7% owned by Ithmaar Bank