Pakistan Microfinance Network (PMN) launched the Pakistan Microfinance Review 2011 for the microfinance industry.
The Pakistan Poverty Alleviation Fund (PPAF), UKAID and the Citi Group supported the initiative.
The year 2011 was declared as a watershed period for the microfinance sector in Pakistan as the industry achieved sustainability despite a challenging macroeconomic environment, rains and floods in Sindh, security situation and persistent energy crises in the country.
The sector is proving successful in making the transition to commercial finance and witnessed the launch of first money market financing instrument with a number of new products and services for credit as well as remittances. The portfolio at risk remains within acceptable thresholds reflecting positively on the quality of portfolio.
The industry continued growth in branchless banking transactions despite the deployment of only two models and saw MFBs and MFIs linking up to provide financial services to the microfinance clientage. With nationwide launch of Microfinance-CIB(Credit Information Bureau), the industry will have the option to better manage credit risk and reward clients with good credit history.
Given these positive developments and the upgraded business environment ranking by Economist Intelligence Unit a number of deep pocket investors expressed interest in exploring the market for potential investment and a number of transactions were successfully concluded.
In presence of an enabling environment and the industry attaining sustainability, the sector is poised for growth. With the entry of new players and consolidation taking place, the industry is ideally positioned for expansion and provision of a wide array of services covering the entire spectrum of microfinance. PMN Chair, Dr Rashid Bajwa highlighted the role of government of Pakistan and State Bank of Pakistan in providing necessary framework and guidance for the microfinance industry.
Source: Daily Times