This presentation will give a brief review about the micro finance and make it easier to understand the growth and performance of this sector in Pakistan

1. MICRO FINANCE SECTOR OF
PAKISTAN
Sidrah Gilani
P1356137
M.A (final)

2. What is Micro Financing?
Bangladesh: An Ideal Example to Follow
Micro Finance Sector of Pakistan
MICRO FINANCING

3. WHAT IS MICRO FINANCING?
A type of banking service
that is provided to
unemployed or low-income
individuals or groups who
would otherwise have no
other means of gaining
financial services. They are
very small loans, made to the
rural poor in developing
countries who normally do
not qualify for traditional
banking credit.

4. SOCIO-ECONOMICS IMPORTANCE OF
MICRO FINANCING
Micro financing
on a larger scale
works as a tool
for development
of the society in
many ways that
can benefit that
specific
individual and
society.

5. BANGLADESH: AN IDEAL EXAMPLE TO
FOLLOW
Poverty is not created by poor people. It is created by the systems we have
built, the institutions we have designed, the policies and laws we have
created.
- Muhammad Yunus

6. - Today it is 90% owned by its borrowers and only 10% by government.

7. MICRO FINANCING SECTOR OF PAKISTAN
• Relatively new in Pakistan both in
concept and practice.
• Presence of MF started in 1960s.
• MF sector in Pakistan actually started
gaining momentum in 1990s.
• In Initial years MF was started through a
focus on rural development.
• Today, there is diverse set of entities that
cater low income groups or individual
across the country.

8. MICRO FINANCE ENTITIES WORKING IN
PAKITAN
MFIs:
Micro finance institutions can also be call non bank financial institution (NBFI). A non-
bank non-government organization providing micro finance services.
- Kashf Foundation
- Asasah Microfinance
- Orangi Pilot Project
- Jinnah Welfare Society
- Akhuwat

9. MICRO FINANCE ENTITIES WORKING IN
PAKITAN
MFBs
A commercial Bank licensed and regulated by State Bank of Pakistan to exclusively
service the micro finance market.
- Tameer Bank
- Khushali Micro Finance Bank
- Advans Pakistan Micro Finance Bank
- Finca Micro Finance Bank
- Apna Bank

10. MICRO FINANCE ENTITIES WORKING IN
PAKITAN
RSPs
Non-government organizations as a non-profit companies.
An RSP is differentiated from MFI based on purely rural focus of its credit
operation
They are registered with Security and Exchange Commission of Pakistan
- National Rural Support Program
- Provinvcial Rural Support Programs

11. CURRENT STATUS OF MICRO FINANCE
SECTOR OF PAKISTAN
ACTIVE BORROWERS
• Number of active borrowers till 2013 = 2.4 million
• Inclusion of 14-15 additional has noticeable impact on the outreach

12. CURRENT STATUS OF MICRO FINANCE
SECTOR OF PAKISTAN
ACTIVE DEPOSITORS
• Number of depositors till 2013 = 2.2 million
• This significant growth in number of borrowers and value of deposit led by
Kashf Bank Limited led by National Rural Support Program

13. CONCLUSION
In Pakistan, microfinance is relatively less developed sector and a large scope
is available to increase the financial services to poor people in the country.
Despite the unavailability of funds, the micro finance sector of Pakistan has
shown a tremendous growth in its banking activities.