VIS Credit Rating Company Limited

                                                                       Press Release

VIS Upgrades Entity Ratings of Frontier Foundry Steel (Private) Limited

 Karachi, November 01, 2021: VIS Credit Rating Company Limited (VIS) has upgraded the entity ratings of Frontier Foundry Steel (Private) Limited (FFSPL) to ‘A/A-1’ (Single A/A-One) from ‘A-/A-2’ (Single A minus/A-Two). Outlook on the assigned ratings has been revised from ‘Positive’ to ‘Stable’. The medium to long-term rating of ‘A’ denotes good credit quality coupled with adequate protection factors. Moreover, risk factors may vary with possible changes in the economy. The Short Term Rating of ‘A-1’ indicates high certainty of timely payment; excellent liquidity factors supported by good fundamental protection factors and risk factors are minor. The previous rating action was announced on August 25, 2020.

FFPSL is principally involved in manufacturing of billets and rebars with two plants situated in Peshawar and Lahore. Given the increase in steel demand mainly in the latter half of FY21 and Company’s expansion of rebars at Peshawar plant, which also came online in FY21, topline grew notably in FY21. The Company is in process of further expansion – by way of vertical integration – mainly establishing a melting plant for making billets in its Lahore plant that is expected to be concluded by March 2022. The ratings take into account anticipated growth in offtake, which will notably improve the bottom line and resultantly the cash flow coverage indicators.

The ratings incorporate conservative payout policy, given full profit retention in the last five years, as a result of which the equity has growth at a CAGR of 31% since FY18. Going forward, the borrowings are expected to increase while equity will also depict strong growth as payout is projected to remain nil. The gearing ratio is likely to depict marginal increase as of Jun’22, albeit will subsequently drop. Liquidity profile of the Company is supported by adequate cash flows generation in relation to outstanding financial obligations. Leverage indicators are still considered on the lower side vis-à-vis peers. Going forward, the ratings remain dependent on maintaining business & financial risk indicators along with timely conclusion of ongoing expansion.

For further information on this rating announcement, please contact Mr. Arsal Ayub, CFA (Ext. 215) or the undersigned at 021-35311861-70 (Ext. 201) or email at

Javed Callea

VIS Entity Rating Criteria: Corporates (August 2021)




FF Grade-80 Steel Bar Launched

For the first time Industry, Consultancy and Academia joined hands for a major industrial Breakthrough by bringing revolutionary steel product in Pakistan – Grade 80 steel bar

FF Steel held launch ceremony of the first-ever Grade-80 steel bar, the strongest steel bar in Pakistan, at Serena Hotel Islamabad on 17th November 2021. Present at the ceremony were Honorable chief guest Senator Shibli Faraz, MD NESPAK – Dr. Tahir Masood, Pro-Rector NUST – AVM Dr. Rizwan Riaz, PEC Chairman – Muhammad Najeeb Haroon, Senator Sajjad Hussain Turi, Senator Daud Khan, Senator Taj Muhammad Afridi, Senator Sana Baloch, and Minister of Railways, Senator Azam Swati.

Grade-80 steel will change the landscape of the construction industry through the industrial revolution and economic growth said, Chairman FF Steel, Nauman Wazir Khattak. The product will have a significant effect on the Current Account Deficit. Given 13% less usage in construction and up to 10% cost-saving while using Grade-80 in comparison to Grade-60, it will considerably narrow down the current account deficit.

According to, Senator Shibli Faraz, through such initiatives good times are coming for the government and for the people of the country. He said that it will contribute to the country’s imports and wealth creation.

An extensive research study was conducted in collaboration with the renowned academic institution, NUST, and consultancy firm, NESPAK. As per the study, FF Grade-80 came out to be most economically feasible and beneficial steel bar in Pakistan. It will give a whole new direction for the construction of high rises and CPEC projects.

“Grade-80 will be of great benefit for the construction of bigger projects and high rises provided the higher strength and reduced cost,” said, MD NESPAK, Tahir Masood.

FF Steel is one of the leading and fastest-growing steel manufacturing companies in Pakistan. After over 30 years of growth starting with the first plant in Peshawar and then a second plant in Lahore, now the company is moving towards the final stage of IPO by the end of 2021, which is expected to be the largest IPO in history of Pakistan’s Steel Sector.




Listing of Frontier Foundry Steel

Karachi: 27 September 2021: Frontier Foundry Steel (FF Steel), one of Pakistan’s leading and fastest growing steel manufacturers and Financial Advisory Consortium held a signing ceremony for the award of mandate for the upcoming listing of FF Steel on Pakistan Stock Exchange (PSX).

A Financial Advisory Consortium (FAC), comprising of HBL, Bank Alfalah Limited, AKD Securities Limited, and Alfalah CLSA Securities Private Limited, has been engaged to advise the Company for listing at the local bourse.

Nauman Wazir, Chairman – FF Steel, Zarak K. Khattak, CEO – FF Steel, Muhammad Aurangzeb, President & CEO – HBL, Atif Bajwa, President & CEO – Bank Alfalah, Aqeel Karim Dhedhi, Chairman – AKD Securities, Ali Ansari, Chairman – Alfalah CLSA, and other senior team members of the FAC were present at the ceremony. The FAC together holds strong credentials with access to deep-rooted capital market investor base, both domestically and internationally.

Incorporated in 1986, FF Steel produces top quality Grade-60 steel bars having plants in Peshawar and Lahore and ranks amongst the top three rebar manufacturers in Pakistan. The Company also intends to explore different opportunities in the South region. FF Steel, with its focus on achieving efficiency and capturing growth opportunities, has undertaken backward integration at its Lahore plant. The Company has also heavily invested in its IT infrastructure and boasts state of the art ERP system.

Furthermore, FF Steel, due to its superior quality and strong brand value has already started exploring diversification into copper export business and steel bars export avenues regionally due to its favorable positioning (proximity to Central Asian countries), which can potentially unlock significant value for the Company in the future.

Commenting on the occasion, Nauman Wazir, Chairman – FF Steel said, “Over the past 3 decades, FF Steel has built strong foundations through its systems and policies, team and market penetration; I am confident of a prosperous and secure future of the Company and its stakeholders. With the assistance of such a strong and professional FAC of HBL, BAFL, AKD and Alfalah CLSA, FF Steel will, Insha’Allah, be making a historic and one of the largest ever private sector IPOs in Pakistan”.



June 2019


FF STEEL the only manufacturer to exclusively produce Grade 60 steel bars in Pakistan hosted a dinner in honor of Mr. Zafar Aman on his new appointment as General Manager NESPAK-Peshawar, on Thursday, June 27th, 2019 at Shelton Rezidor. CEO FF STEEL Mr. Zarak K. Khattak, graced the event with his presence and expressed gratitude to the honorable guests for joining. The dinner was arranged to welcome Mr. Zafar Aman and to celebrate the growing and everlasting relations with NESPAK. Many consultants from different organizations also attended the dinner. FF Steel enjoys 33 years legacy with their clients. All the guests were thanked for participating in the event and holding hands together for a ‘Stronger and Safer’ Pakistan.

Aircraft Monument Inauguration Ceremony

Islamabad, 14 June 2019: FF Steel is one of the leading Grade 60 steel bar manufacturers, held its A-5 Aircraft Monument Inauguration Ceremony showcasing the national pride in Islamabad. The chief guest of the ceremony, Mr. Pervez Khattak, Federal Minister for Defence, was also in attendance.

Mr. Pervez Khattak inaugurated the site, cutting the ribbon and announcing it open to the public. The ceremony concluded with remarks by the federal minister, followed by some fun activities for attending families and their children. FF Steel is the Pakistan’s only manufacturer to exclusively produce Grade 60 steel bars. It has an extensive network in 12 cities across the country with its Head office in Peshawar and two STEEL Plants situated in Lahore and Peshawar.

Blood Drive Campaign

FF STEEL and Shaukat Khanum Memorial Cancer Hospital and Research Centre joined hands for a blood donation camp at FF STEEL head office Monday, 17 June, 2019. All employees of FF STEEL ensured maximum donation because we know that every drop counts.

Shaukat Khanum Memorial Cancer Hospital and Research Centre was generous enough to sign MOU with FF STEEL for providing health benefits to employees and their families.

April 2019

FF Steel‘s Retailers & Dealers event

FF Steel held a Gala dinner & Musical Night on 4th April 2019, to celebrate success and achievements of their dealers and retailers from Punjab region. Senator Nauman Wazir Khattak, Chairman FF Steel, graced the event with his presence and gave away Honda Motor bikes as a gift to the high achievers. He appreciated their hard-work and dedication towards FF Steel. Senator Nauman Wazir quoted “We consider the success of our business partners as our own. The purpose of this event is to take a moment and acknowledge our relationship with our partners, because without their efforts this would not have been possible”. With a growing network, everlasting relations and every minute passing by, FF Steel is getting closer towards its goal for a “Stronger and Safer Pakistan”.

Peshawar Dinner Event

FF Steel hosted a dinner for Architects at PC Peshawar on Thursday, April 10th, 2019. Renowned architects from KPK including Mr. Zulfiqar (Mascot Consultants), Mr.Tahir Khattak (Wadaan Consultants), Mr. Adnan Ahmed Khan (Chairman of Architecture Department, CECOS), Mr. Marwat Khan (Associate Professor, CECOS) attended the dinner. The event was arranged to create awareness among architects about advancements made in steel industry and to update the architects with the difference between quality specifications of Grade 40 & Grade 60 Steel bars. The outcome of event was to achieve better structural designs and offer architects prospects for even more creative designs. Mr. Zarak Khan Khattak (CEO, FF Steel) graced the event with his presence and personally answered questions at the end of session.
FF Steel thanks all guests for participating in the event and holding hands together for ‘Stronger and Safer’ Pakistan.

January 2019

Industrialist Association Peshawar Announces the Election Schedule 2018-19

Election Committee meeting of Industrialist Association Peshawar was held on 15 January 2018 to delibrate upon the parameters and schedule of Industrialist Association Peshawar Election 2018-19. It was decided that the election would be held as per procedure of trade bodies which has been taken as the Criteria of election. A 13 members management committee will be elected through a free, fair, open & transparent election which be followed by President, SVP & VP election according to schedule the election’s activities will start withsubmission of nomination papers on January 27, 2018 and culminate on February 16, 2018 with President, SVP & VP election. Annual General Meeting will be held on February 27, 2018.

November 2017


Less than US $ 25/ton would lead to Default
Chinese take over Sri Lanka Hambantota deep Sea Port – Debt: equity swap
Senator Nauman Wazir while addressing institute of Architecture Pakistan Peshawar, highlighted the importance of architecture in not only buildings but the infrastructure built across Pakistan, the need of it, being in sync with the culture and to be environment friendly.
He also highlighted the coming infrastructure and power project under CPEC. He showed his reservations on the financial viability of the Khunjrab to Gawadar road and infrastructure. At present the goods transport from Xinjiang to Dubai port through Eastern port of China costs US $ 130/ton to the Chinese exporters and takes 22 days. However the same goods are transported through Gawadar would cost the Chinese exporters US $ 50/ton.
The Chinese exporters from Xinjiang would not only save US $ 80/ton but also 15 days of transportation time.
To make Khunjrab to Gawadar road a sustainable and financially viable; a toll tax of 2.50% of the invoice value would need to be charged from the Chinese exporters. This would amount to $25/ton. Still making it US $ 50/ton cheaper and also 15days of reduced transportation time.
Senator Nauman Wazir showed his apprehension of Pakistan Government not deciding the toll charges prior to launching CPEC program.
The high markup and insurance premium charged by the Chinese investors in the power projects would result in high electricity cost for the industry in Pakistan which would result in higher production cost and making Pakistani products uncompetitive in the international market.
Senator Nauman Wazir also showed his reservations of offering 23 years tax holidays to Chinese firms and not to Pakistani firms and investors. The influx of tax free construction material from china would seriously hamper the existing industries in Pakistan.
He appreciated Bighto Paints for setting up 3.1 Million Liter of paint manufacturing plant at Faisalabad and 1100tons /day of steel manufacturing facility of FF Steel being setup in Lahore.

October 2017


Peshawar: Geographically Pakistan is among the most seismically active countries; thus, earthquakes occur frequently and of extremely destructive nature in Pakistan. Since 1986 FF Steel is in Steel manufacture ring industry in Pakistan, committed to raise awareness regarding the importance of using the steel of stronger grade in all constructions. Being socially responsible corporate organization, FF Steel believes that building awareness is actually the first step towards social betterment. As part of its awareness raising and public information campaign, FF Steel held an event in a local hotel for the officials of Department of Communications and Works, Khyber Pakhtunkhwa.
On this occasion the CHAIRMAN of FF Steel, Senator Nauman Wazir stated that quality constructions can save hundreds of human lives. News about the caved- in roofs and collapsed buildings in media prove that compromise on quality can result in a life-long tragedy. He also said that FF Steel strives to make Pakistan synonym of standard and quality in construction industry. To materialize this goal FF Steel has successfully established its identity as the only manufacturer in Pakistan that solely deals in grade 60 steel.
To create awareness of Grade 60 Steel Bars due to the largest seismic activity reported by PMD and Norsars, FF Steel’s team of technical experts educated the audience about the importance of using minimum grade 60 steel in their constructions through case studies and international reports. They stressed the need to take radical approach to promote the concept of quality- focused stronger & safer building structures.
The audience showed great interest in the event and appreciated this effort.

July 2017

FF STEEL Achieved Financial Closure through syndication

Peshawar, 20th July 2017: FF-STEEL during its financial closing ceremony announced Financial Closure through syndication. The ceremony was held in FF Steel’s head office, Peshawar.  Corporate Heads from different banks including mandate advisor and arranger Bank Al-Falah, Transaction Legal Counsel Mohsin Tayeb ALY & Co (MTC), participating Banks JS Bank, Askari Bank, Bank Of Khyber, Faysal Bank were also present on the occasion. Chairman FF Steel, Senator Nauman wazir; Chief Executive Officer, Mr.Zarak Khan Khattak; Chief Financial Officer, Mr. Fayyaz Jarral and other representatives from banking sector, signed the agreement.

During the ceremony Senator Mr. Nauman Wazir (chairman FF – Steel) stated that from 1st November, Lahore unit will be operational. In addition to that grid stations along with two melting furnaces in Peshawar & Lahore will also be functional. FF –Steel realizes well the ever increasing demand of Grade- 60 Steel Bars in construction industry, particularly the household users; it is evident as they are preferring it over Grade 40 steel Bars. Senator Nauman wazir emphasis that FF – Steel will maintain its vital role towards betterment of the country by providing quality Grade – 60 Steel Bar to build stronger and safer Pakistan.