Governance

CHAIRMAN’S REVIEW

Pakistan’s economy remained broadly stable during the financial year ended June 30, 2026, supported by the ongoing IMF program, improved fiscal discipline, exchange rate stability and controlled inflation. How-ever, geopolitical tensions during the latter part of the year disrupted regional trade and created pressure on the external sector and domestic inflation. Strong remittance inflows continued to support the external position, while the State Bank of Pakistan maintained a cautious monetary policy stance to preserve macroeconomic stability and support economic growth. Against this backdrop, the cement sector showed gradual improvement, supported by recovery in domestic demand, easing inflation and relatively stable financing conditions.

The Company’s total sales volume declined by 2%, mainly due to lower export volumes following the closure of the Afghan border. Despite the decline in dispatch volumes and the impact of a one-off tax adjustment in the previous year, the Company achieved a profit after tax of Rs. 7,255 million for the year ended June 30, 2026, compared to Rs. 8,681 million in the previous year. The Company continued to focus on operational efficiencies, optimization of its sales mix, and efficient working capital management which supported profitability despite challenging market conditions.

The Company remains committed to maintaining high standards of corporate governance and complies with the applicable requirements relating to the composition, functioning and meetings of the Board of Directors and its committees. In accordance with these requirements, the Board conducts an annual evaluation of its performance to assess its effectiveness in achieving the Company’s strategic objectives and to identify areas for improvement. Based on the approved evaluation criteria, the overall performance of the Board during the year was assessed as satisfactory.

The Board comprises an appropriate balance of skills, experience, knowledge and perspectives, enabling effective deliberation and informed decision-making. The Board and its committees discharge their responsibilities with due diligence and provide effective oversight of the Company’s strategic direction, business plans and overall performance. The Board regularly reviews financial and operational performance against approved plans and objectives and provides appropriate guidance to management to support the achievement of the Company’s strategic and operational goals. The Board of Directors also provides overall oversight of the Company’s sustainability-related risks and opportunities. The Company continues to integrate ESG considerations into its business strategy, with particular focus on environmental sustainability, energy efficiency, employee wellbeing and community development. Its CSR initiatives remain focused on education, healthcare, women’s empowerment and skills development, while also supporting the basic needs of surrounding communities. The Company also continues to promote tree plantation and other initiatives aimed at preserving local ecosystems. The Company remains committed to further strengthening these initiatives and creating a positive and sustainable impact on its stakeholders and surrounding communities.

I express my sincere appreciation to our employees for their dedication, hard work and adaptability throughout the year. I also thank our customers and suppliers for their continued support and commitment. My appreciation extends to our shareholders, bankers and regulatory authorities for their trust and confidence in the Company. Finally, I express my gratitude to my fellow Board members for their valuable guidance, support and continued commitment throughout the year.

Omer Faruque
Chairman

BOARD OF DIRECTORS

Mr. Omar Faruque - Chairman

Non Executive Director

Mr. Omar Faruque studied from the City of London, Polytechnic London, and got a Honours degree in B.A. Finance. Currently, he is the Chief Executive of Zensoft (Pvt.) Limited and a Director of Greaves Airconditioning (Pvt.) Limited and Greaves CNG (Pvt.) Limited. He is a ‘Certified Director’ from the Pakistan Institute of Corporate Governance.
Mr. Azam Faruque - Chief Executive

Executive Director

Mr. Azam Faruque is the Chief Executive of Cherat Cement Co. Ltd. He is an Electrical Engineering and Computer Science graduate from Princeton University, USA. He completed his MBA with high honors from the University of Chicago, Booth School of Business. Apart from the time he has spent in the cement industry, he has also served as a member on the Boards of State Bank of Pakistan, National Bank of Pakistan, and Oil and Gas Development Corporation Ltd. He was a Member of the Board of Governors of GIK Institute, Member of the National Commission of Science & Technology and also a Member of the National Committee of the Aga Khan Foundation. Mr. Azam Faruque has served on the Board of the Privatization Commission of the Government of Pakistan, Atlas Asset Management Ltd., International Industries Ltd., Atlas Battery Ltd., Indus Motor Company Ltd. Habib University Foundation, and was the Chairman KPK Oil & Gas Development Company Ltd.

At present, he is a member of the Board of Directors of Faruque (Pvt.) Ltd., Greaves Pakistan (Pvt.) Ltd., Unicol Ltd., Atlas Honda Ltd. and The Pakistan Business Council. He is a ‘Certified Director’ from the Pakistan Institute of Corporate Governance.
Mr. Akbarali Pesnani - Director

Non Executive Director

Mr. Akbarali Pesnani is an MBA and a fellow member of both the Institute of Chartered Accountants and Institute of Cost and Management Accountants of Pakistan. He was the Chairman of Gwadar Port and Gwadar Port Implementation Authority from 2004 to 2006, and has served on the Boards of, Mirpurkhas Sugar Mills Limited., Clariant Pakistan Limited and Agha Steel Limited. Mr. Pesnani has been associated with the Aga Khan Development Network (AKDN) at senior levels for over 49 years. Mr. Pesnani has also served as a Diplomatic Representative for AKDN in Tajikistan for 7 years and as an Envoy of His Highness the Aga Khan, in Afghanistan for about 2 years.

Presently, he is the Chairman of Cherat Packaging Limited, Jubilee General Insurance Company Limited and the Aga Khan Cultural Service Pakistan. He is also a Director on the Board of Pakistan Cables Limited. His association with the Ghulam Faruque Group dates back almost 45 years.
Mr. Arif Faruque - Director

Non Executive Director

Mr. Arif Faruque is a Swiss - qualified Attorney-at-Law and also holds Masters degrees in both Law and Business Administration from the United States of America. He also completed the Owner President Management Program at Harvard Business School. He is the Chief Executive of Faruque (Pvt.) Ltd. He is on the Board of Directors of Mirpurkhas Sugar Mills Ltd. and Cherat Packaging Ltd. Besides the above, he is also a member of the Board of Governors of Lahore University of Management Sciences (LUMS).
Mr. Ariful Islam - Director

Independent Director

Mr. Ariful Islam is a senior banker with over 39 years of experience with various banks in Bahrain and Pakistan. He is a qualified Chartered Accountant and was admitted to the Institute of Chartered Accountants in England and Wales in 1983. He is also a Fellow member of the Institute of Chartered Accountants of Pakistan. He worked with Peat, Marwick, Mitchell & Co. (now KPMG) in their main London Office before starting his banking career with Faysal Islamic Bank of Bahrain. He joined Meezan Bank in April 1999 as the Bank’s first Chief Operating Officer and subsequently became Deputy CEO of the Bank in May 2013.

Mr. Islam recently retired Meezan Bank, after serving more than 25 years with the Bank. During his tenure, his contribution has helped develop and transform Meezan Bank into the country’s premier Islamic bank and one of the most profitable banks in Pakistan. He has also served as the Chairman of the Board at Pakistan’s leading Assets Management Company, Al Meezan Investment Management Limited for 17 years. Mr. Islam is currently on the Board of Honda Atlas Cars (Pakistan) Limited, Lucky Core Industries Limited, Cherat Cement Company Limited and Lucky Landmark (Pvt.) Limited. He is also an active contributor and supporter of country’s various educational, health and community building programs.
Mr. Abrar Hasan - Director

Independent Director

Mr. Abrar Hasan serves as the Chief Executive Officer and as a Director on Board of National Foods since 2000. National Foods is the leading multi-category food company in Pakistan producing over 250 different products, marketed both in Pakistan and exported to 40 countries worldwide. Under his leadership, the company has delivered steady sales growth year on year and tremendous success. Mr. Hasan is providing direction and leadership to the company by setting a clear vision for future growth and has actively pursued new market opportunities and delivered successful strategies to drive the company’s vision, focusing on continuous innovation, highest standards of quality and superior consumer value.

He graduated with a BS in Industrial Management and a minor in Industrial Engineering from Purdue University, Indiana, USA. He was elected on the Board of Cherat Cement Company Ltd. as an independent director on October 16, 2018. Mr. Abrar Hasan is also the Chairman of Board for Naymat Collateral Management Company, which is Pakistan’s first Collateral Management company, that facilitates and empowers farmers by making formal credit accessible to them through financial institutions. Besides this, he is a also a Director of Associated Textile Consultants Holdings (Pvt.) Ltd., Pakistan Business Council. He is a Certified Director from the Pakistan Institute of Corporate Governance.
Mrs. Zeeba Ansar - Female Director

Independent Director

Mrs. Zeeba Ansar has over 27 years of private and corporate banking experience. She did her Bachelors in Economics and Statistics from the University of Punjab and then completed her MBA in Marketing and Finance from the Institute of Business Administration. In her career as a banker she has worked with Deutsche Bank AG as Manager Corporate Banking Department and Faysal Bank as Senior Vice President and Corporate Head-South. She then joined UBL as Executive Vice President and Regional Corporate Head-South and retained the position for 10 years. Her most recent professional engagement was with NIB Bank as Group Head-Corporate and Investment Banking where she worked till 2017.

She is currently serving as Director in Gul Ahmed Textile Mills Limited, Samba Bank Limited, Lucky Investments Limited, Lucky Electric Power Company Limited and Y.B Pakistan Limited. She is also a ‘Certified Director’ from the Pakistan Institute of Corporate Governance.
Mr. Yasir Masood - Director

Executive Director

Mr. Yasir Masood is a fellow member of the Institute of Chartered Accountants of Pakistan. He is a Certified Internal Auditor (CIA) and qualified Certified Information Systems Auditor (CISA). He is also a certified Director from Pakistan Institute of Corporate Governance. He is serving as the Director and Chief Operating Officer of Cherat Cement Company Ltd. He is the Chief Executive Officer of CFS Minerals (Private) Limited and also serving on the Boards of Greaves Airconditioning (Pvt.) Ltd., Greaves CNG (Pvt.) Ltd. and Greaves Engineering Services (Pvt.) Ltd. Mr. Yasir is also serving as Chief Financial Officer of Faruque (Pvt.) Ltd. He has been working and contributing in various committees of different Business forums. He is currently serving as Industry Expert and member of Arbitration panel of Pakistan Stock Exchange Limited (PSX).