LAHORE: The Pakistan Credit Rating Agency (PACRA) has maintained its entity ratings for Packages Limited, a key holding of the Ali Group, at Long Term AA+ and Short Term A1+, with a stable outlook. Despite facing challenges in dividend income and operating losses, the company is implementing a revised strategy to enhance profitability.

Packages Limited has held a stable business profile, managing an investment portfolio valued at PKR 59.3 billion as of March 2025. This portfolio includes significant holdings in companies like Nestle Pakistan Limited and Packages Convertors Limited. However, the company's dividend income decreased to PKR 4,060 million in 2024 from PKR 5,840 million in 2023, largely due to the absence of dividends from Bulleh Shah Packaging (Private) Limited.

The company is addressing these financial challenges through a strategic plan that includes a PKR 3 billion injection into StarchPack (Private) Limited and PKR 8 billion into Bulleh Shah Packaging. The funds will be allocated through a mix of ordinary share capital, subordinated debt, and possible conversion of prior loans to equity.

Despite these setbacks, Packages Limited's credit ratings remain supported by its robust financial standing, strategic vision, and the proven business acumen of its sponsors. The company's equity was reported at PKR 55.2 billion in December 2024.

The ratings affirmation reflects the company's strong balance sheet and its resilience in navigating market challenges, setting a path for long-term sustainability.