MicroWATCH A quarterly update on OUTREACH in Pakistan

ISSUE 8: QUARTER 2 (Apr - jun 2008)

rowth picked up slightly as the sector's Micro-Savings Micro-Insurance G outreach grew by ten percent compared to the eight percent growth of the previous Active Value Active Value Policy Sum Insured Borrowers (PKR Millions) Savers (PKR Millions) Holders (PKR Millions) quarter. In absolute terms, the net increase in active borrowers was the highest during these 2008-Q1 1,591,126 16,527 1,715,612 4,208 1,368,807 12,419 three months compared to each quarter over 2008-Q2 1,754,118 19,648 1,732,950 4,692 1,576,381 15,183 the past year. National Rural Support

Programme (NRSP) continued to be the Increase (Net) 162,992 3,121 17,338 484 207,574 2,764 biggest contributor to this expansion, followed by Khushhali Bank (KB) and First Increase (%) 10% 19% 1% 12% 15% 22% MicroFinanceBank Ltd. (FMFB). Some of the fast growing microfinance providers (MFPs) of 2007, such as Kashf, Active Borrowers by Peer Group seem to be in the process of consolidation and did not post any significant 1,800 1% 5% growth during the quarter. 1,600 1% 1% 5%5% ) 1% s 1,400 5% Rural Support Programmes (RSPs) continued to be the largest peer ’ 0 5% 39% 0

0 1,200 39% ( group (for definitions of peer groups please see the back cover) in 36% CFI s r 1,000 34% terms of active borrowers and their share has grown consistently over e NGO w o

r 800 23% RSP the past year. Given NRSP's expansion and its dominance in its peer r o 24% 25% 24% B

600 MFI group, coupled with the relative slowdown in the growth of other large e v i MFB t 400 MFPs, this is not surprising. c

A 32% 200 36% 33% 31% For the first time, Bahawalpur has emerged as the most active 0 2007-Q3 2007-Q4 2008-Q1 2008-Q2 microfinance market with the highest penetration rate of all districts, Quarter overtaking Lahore. This again can be attributed to NRSP which is very active in the district. No significant change was seen in most other Active Savers by Peer Group parameters of the microcredit portfolio: group lending remained 1,800 0% dominant, the male-female ratio favored male borrowers slightly 0% 0% 6% 1,600 whereas the rural borrowers outnumbered urban borrowers by a small 1,400 margin as well. The MFIs share in GLP declined whereas the RSPs CFI ) 1,200 s ’ NGO and MFBs gained share of the market. 0

0 1,000

0 82% 87% ( RSP

s 800 r

In terms of savings, very little growth was seen in the number of active e MFI

v 600 a MFB S savers but the value of savings posted a decent growth of 12 percent. 400 e v i Although the total savings of NGOs and RSPs declined, an addition of t 200 2% 2% c 11% A 10% Rs. 500 million to FMFB's value of savings resulted in an overall 0 2008-Q1 2008-Q2 increase in the sector's total savings. Peer-group wise RSPs held the Quarter largest market share in terms of active savers whereas microfinance banks (MFBs) clearly dominate in terms of their share in the sector's Policy Holders by Peer Group total savings. 1,800 Of the three microfinance services, outreach of micro-insurance grew 1,600 1% ) 3%

s 1% ’ 1,400 the fastest in this quarter. However, unlike the growth of active 0 0 3% CFI

0 33%

( 1,200

borrowers which shows the number of new clients reached, the growth s 30% NGO r 1,000 e

d RSP in micro-insurance mostly stems from the MFPs' providing this product l

o 800

H 43% to their existing clients. Kashf and NRSP together accounted for 70 MFI y 600 49% c i

l MFB percent of the policy holders, and their shares remained over 90 o 400 P 200 percent within their respective peer groups. The share of male policy 17% 20% holders increased by four percent although overall the total number of 0 2008-Q1 2008-Q2 female policy holders remained higher. Quarter

Department for DFID International Pakistan Micr finance Network Development Licenced under Section 42 of Companies Ordinance 1984

MicroWATCH is a publication of the Pakistan Microfinance Network (PMN). It was made possible by the generous support from the Department for International Development (UK) and the Citi Foundation. This is also the result of the efforts of organizations that contributed their data (for citations, see back cover).

o d n a T

, r

a s y 0 0 0 0 r A h / 0 0 0 0 e a l 0 0 0 0 N l , , , , w A

0 0 5 0 0 o o r 0 1 2 0 5 d

r 0 1 - - - n ,

o a - d 0 1 1

1 T B

0

, 0 1 0 i n r e 1 0 0 0 a , , v > e 0 y i 5 0 , t t a 2 1 0 g c M 5

e A ;

) ) u Y L d R a O D T I (

R R I o e r R l M o E a h T H

c s S D S m E A a T J K

U , f P

a i

i r S I

d a

n D h L

I ( A S

W n E a Y O T R C R w O O h N A K R H e E N L A U A S G R T L A S

D L I : A A B A A A

A A N I S p R T G K R B A W H a I J D D T A U A A N A G U m D A A T T N P

R S A L A

I G A A B B T M L e U A R R P A M B G A A h A A O J H K t R N H K N L I

U A R B M N U K W I

O U E A L A n Z A I D B A G I E A A G P D S P o E S H I D D L T T F L

A I H H H N N H K R I N A S S U n A A A S A I I G J A P N A A B F A H w B W I H N L I I M A H I L H o M R O R A H B A S N h T A A A L

A K N K A s A A H A W B R A

W K N H C A L B t G R S I D A E W W E E A W D O o A A U G V I R O S H T S R N T R n K

I R R H P L A G R

S G A N T , H A T A D L A S A D N I A

R A e H A W D B H A T U M r R A H K R T W A R I K O K A C O O H H o L W H E C K

A S N f N A D D N T L A H

R

J K A U P A e D A A A N R W I r O A R P H M H D H A A

e A H E K M G U A B

A K h N K H K A

T R t R U B W S

Y S A A R E A G R O e Y L E H F r A K L N A T E P A F K Y a R U

A

N A L H R I A M

M s A N H A I Z

C T U t W Z P A N c H P H L A O R U i K A R A r E K N A H K A t

N M

R

A B H A R s G

L M i A I E

R I H

J F K N I T d K T A E D A

A E A A K T R g M Z M R R S H K I O E n R U S O A D i U K I S T A I H D U R H A w L R M A G A G K E B o G A H L l U F l B K A N

H B K R A B o

U

O B f A O A U U R

N R S A H H I S L O L R P e R O U Z R A L D C H H h L R D U D P I E H U A A A O T A P A

R A D S F J B I . D H I K B R B H B n A S M A A A A K A a B U S t R I K

I R I I W s A A A E B i S A A N T I H S T A R N k D L N A G A S S I T A N a A Y L A A R A Q F N P H U O K

A I M H A I f

D N B R T J H I Z o H L

A A G C H A A y L D N S A L A H e I A U L T J R v P r L T T U R A u E S E D A K S B A U B

D S T y Q M Z A

A A b U

A L L H e L l I A K I b K Q N K a l i A H a S R v U A a N

N W A e s A R d ) a A b r o H m I

h K A n Z ( e G

i e e A

R n b H

U a t f r C G o e J n h

w N e S

o A v ; P ) a t

H h a o

C 6 w E 0 S r - K ( n

4 a R r 0 r 0 A o 2 D o g

A n n i o i i

W M d

t G ; e ) t a a B c n r u a a

k r

n m a

a e

r L

I b d ( e

t i s t o c k i r r d v t a s i t i d d e

t h w s S e

; n i )

c r d o a f

b s a r e D A i e r d a y d n H ( u

o n b a

l h a K c

i d h a p a m r g m o a e h u G

* M

02 MicroWATCH

MARKET HIGHLIGHTS (APR 1, 2008 – JUN 30, 2008)

MICROCREDIT

A. Top 5 MFPs: Increase in Active Borrowers (Net) B. Top 5 MFPs: Increase in Active Borrowers (%)

NRSP BRAC

KB FMFBL P P F F FMFBL TMFB M M

TMFB NRDP

KASHF NRSP

0 10 20 30 40 50 60 70 80 90 0 50 100 150 200 250 Increase (000’s) Increase (%)

C. Largest Providers of Microcredit (Active Borrowers) D. MFPs with Largest Geographic Spread

MFP Active Borrowers Market Share MFP Geographic Spread (30-Jun) (% of Active Borrowers) (No. of Districts)

1 NRSP 575,740 32.8 1 KB 89

2 KB 359,314 20.5 2 NRSP 50

3 Kashf 318,501 18.2 3 FMFBL 45

4 FMFBL 155,154 8.8 4 Kashf 24

5 PRSP 75,230 4.3 5 PRSP 20

E. Districts with Highest Growth (Net)

Active Potential Microfinance Penetration Growth Province District Borrowers Market Rate (1 Apr to 30 Jun) (30-Jun) (2007) (%) A Net % B (A/B)*100

1 Jafarabad 2,408 1,290 115.4 121,911 1.98% 2 Balochistan Nasirabad 2,063 1,210 141.9 75,783 2.72% 3 Gwadar 2,102 249 13.4 55,537 3.78% 1 Nowshera 18,337 9,341 103.8 201,208 9.11% 2 N.W.F.P Mardan 40,979 3,606 9.6 354,988 11.54% 3 Charsadda 13,298 1,463 12.4 271,736 4.89% 1 Bahawalpur 97,052 14,639 17.8 461,777 21.02% 2 Punjab Multan 69,753 12,695 22.2 689,339 10.12% 3 Rahimyar Khan 36,841 7,743 26.6 585,705 6.29% 1 Larkana 16,015 10,515 191.2 534,891 2.99% 2 Sindh Karachi 95,640 5,612 6.2 1,329,990 7.19% 3 Badin 10,185 5,105 100.5 294,781 3.46% 1 Bhimber 1,341 529 65.1 - - 2 AJK Kotli 5,313 484 10.0 - - 3 Neelum 1,395 387 38.4 - - 1 Ghizer 5,605 594 11.9 - - 2 FANA Skardu 6,047 552 10.0 - - 3 Ghanche 2,873 374 15.0 - - 1 Kurram 944 245 35.1 - - 2 FATA Mohmand 295 166 128.7 - - 3 Bajaur 221 145 190.8 - -

1 ICT Islamabad 4,156 312 8.1 74,750 5.56% 03 MARKET HIGHLIGHTS (ARP 1, 2008 – JUN 30, 2008)

MICRO-SAVINGS

A. Top 5 MFPs: Increase in Active Savers (Net) B. Top 5 MFPs: Increase in Value of Savings (Net)

NRSP FMFBL

FMFBL NMFB P P

F TMFB F RMFB M M

NMFB TRDP

ASASAH ASASAH

- 20 40 60 80 100 120 0 200 400 600 Increase (000’s) Value (PKR Millions)

C. Largest Providers of Micro-Savings (Active Savers) D. Districts with Highest Outreach (Active Savers)

Active Savers Market Share Active Savers Increase MFP District (30-Jun) (% of Active Savers) (30-Jun) (1 Apr - 30 Jun) Net % 1 NRSP 943,542 54.4 1 119,630 1,526 1.3

2 PRSP 333,714 19.3 2 Bahawalpur 105,419 18,043 20.6

3 TRDP 216,182 12.5 3 Karachi 68,014 8,106 13.5 4 FMFBL 114,222 6.6 4 Bhawalnagar 49,655 6,908 16.2 5 TMFB 67,528 3.9 5 Badin 45,734 117 0.3

MICRO-INSURANCE

A. Largest Providers of Micro-Insurance (Policy Holders) B. Districts with Highest Outreach (Policy Holders)

Policy Holders Market Share Policy Holders Increase MFP District (30-Jun) (% of Policy Holders) (30-Jun) (1-Apr to 30-Jun) Net % 1 Kashf 621,658 39.4 1 Lahore 210,879 6,506 3.2

2 NRSP 481,642 30.6 2 Karachi 94,337 489 0.5

3 FMFBL 155,154 9.8 3 Faisalabad 92,844 -1,907 -2.0 4 KB 129,540 8.2 4 Bahawalpur 82,340 14,872 22.0 5 TRDP 41,748 2.6 5 Gujranwala 73,710 2,364 3.3

04 MicroWATCH

SUMMARY OF MICROCREDIT PROVISION (All Pakistan) Exchange Rate (Jun 2008): PKR/USD = 68.8/1

Indicator Total Lending Methodology Peer Group

Group Individual MFB MFI RSP NGO CFI Number of Branches/Units 2008-Q1 1,424 - - 285 222 797 103 17 2008-Q2 1,515 - - 326 237 830 105 17 Active Borrowers 2008-Q1 1,591,126 1,499,361 91,765 489,499 386,351 621,054 75,932 18,290 2008-Q2 1,754,118 1,636,488 117,630 566,343 396,526 691,389 79,850 20,010 Gross Loan Portfolio (PKR Millions) 2008-Q1 16,527 15,032 1,495 5,030 3,450 6,851 891 306 2008-Q2 19,648 17,665 1,983 6,185 3,597 8,552 997 318 Average Loan Balance (PKR) 2008-Q1 10,387 10,026 16,288 10,276 8,929 11,031 11,728 16,719 2008-Q2 11,201 10,794 16,860 10,921 9,072 12,369 12,481 15,866 Number of Loans Disbursed 2008-Q1 399,511 374,383 25,128 136,057 127,602 114,404 17,375 4,073 2008-Q2 705,199 669,428 35,771 206,874 147,319 327,684 19,826 3,496 Disbursements (PKR Millions) 2008-Q1 5,444 4,850 593 1,943 1,546 1,622 250 83 2008-Q2 10,677 9,791 886 2,872 1,831 5,589 317 69 Average Loan Size (PKR) 2008-Q1 13,626 12,956 23,618 14,277 12,119 14,177 14,398 20,390 2008-Q2 15,141 14,626 24,774 13,884 12,426 17,056 15,975 19,623

Gross Loan Portfolio Gross Loan Portfolio by Methodology

25,000 25,000

) 20,000 ) s 2% s 20,000 n n

o 5% o i 2% i 10% l CFI l l l i 5% i 9% M 15,000 M NGO 15,000

R 44% R

K RSP K P 42% P

( ( 90% 10,000 91% e MFI e 10,000 Individual u u l l

a 18% a

V 21% MFB V Group 5,000 5,000 30% 31% 0 0 2008-Q1 2008-Q2 2008-Q1 2008-Q2 Quarter Quarter

Active Borrowers by Gender Active Borrowers by Rural/Urban

1,800 1,800

) 1,600 ) 1,600 s s ’ ’ 0 1,400 0

0 1,400 0 0 0 ( (

1,200 49% s 1,200 58% s r 50% r 56% e 1,000 e 1,000 w w o o r r r 800 r 800 o o B B

600 Female 600 Rural e e v v i i

t Male 400 51% t 400 42% Urban

c 50%

c 44% A 200 A 200 0 0 2008-Q1 2008-Q2 2008-Q1 2008-Q2 Quarter Quarter

05 SUMMARY OF MICROCREDIT PROVISION (All Pakistan)

Active Borrowers by Lending Methodology Distribution of Staff

1,800 12,000 7% 1% ) 1,600 1% s 6%

’ 10,000 8%

0 1,400 8% 0 0 ( f

1,200 f 8,000 CFI s a

r 45% t e

S 39% 1,000 NGO w f

o 6,000 o

r r r 800 93% RSP e o 94% b

B 17% 600 Individual 4,000 MFI m e u v

i 23% t 400 Group N MFB c 2,000 29% A 200 29% 0 0 2008-Q1 2008-Q2 2008-Q1 2008-Q2 Quarter Quarter

Active Borrowers by Sector

Other, 12% Housing, 1% Agriculture, 24%

Manufacturing/ Production, 6%

Services, 6%

Trade, 35% Livestock/Poultry, 16%

SUMMARY OF MICRO-SAVINGS PROVISION (All Pakistan)

Saving Methodology Peer Group

Total Intermediation Mobilization MFB MFI RSP NGO CFI Number of Savers 2008-Q1 1,715,612 172,814 1,542,798 172,814 24,839 1,407,671 110,288 - 2008-Q2 1,732,950 205,712 1,526,933 194,129 28,483 1,505,326 5,012 - Value of Saving (PKR Millions) 2008-Q1 4,208 2,878 1,336 2,872 4 1,310 21 - 2008-Q2 4,692 3,376 1,316 3,376 5 1,30 2 - Average Saving Balance(PKR) 2008-Q1 2,453 16,619 866 16,619 177 931 190 - 2008-Q2 2,707 16,410 862 17,389 189 869 442 -

Saving Methodology: 1. Intermediation: Public deposits used to finance an organization's loan portfolio. Only SBP-regulated MFPs (CFIs and MFBs) can accept and intermediate deposits from the general public.

2. Mobilization: MFPs not regulated by SBP (MFIs, NGOs, RSPs) can neither hold nor intermediate deposits from the general public. These organizations do however mobilize savings from their members/clients to place with licensed commercial banks.

06 MicroWATCH

SUMMARY OF MICRO-SAVINGS PROVISION (All Pakistan)

Value of Savings by Peer Group Active Savers by Gender

5,000 0% 1,800 4,500 0% 0% 1,600 1%

) 4000 28% 35% 33% ) s 1,400 s n ’

o 3,500 31% 0 i l

l 0% 1,200 0 i 0

CFI ( M 3,000

0% 1,000 s R 2,500 NGO r K e v

P 800 ( a 2,000 72% RSP e S 600 Female u 69% e l 1,500 65% 67% v

a MFI i t V 400 Male 1,000 MFB c A 200 500 0 0 2008-Q1 2008-Q2 2008-Q1 2008-Q2 Quarter Quarter

Value of Saving by Saving Methodology Active Savers by Urban/Rural

5,000 1,800 4,500 1,600 7% 8%

) 4000 28% ) s 1,400 s n ’ o 0 i 3,500 31% l

l 1,200 0 i 0 ( M 3,000

1,000 s R r

K 2,500 e v

P 800 93% 92% ( a 2,000 e S 72% Mobilization 600 Urban u e l 69% 1,500 v a i t V Intermediation 400 Rural 1,000 c A 200 500 0 0 2008-Q1 2008-Q2 2008-Q1 2008-Q2 Quarter Quarter

SUMMARY OF MICRO-INSURANCE PROVISION (All Pakistan)

Total Type Peer Group

Health Life MFB MFI RSP NGO CFI Number of Policy Holders

2008-Q1 1,368,807 416,122 952,685 238,126 663,583 416,122 42,091 8,885

2008-Q2 1,576,381 523,390 1,052,991 315,762 675,783 523,390 49,207 12,239 Sum Insured (PKR Millions) - - 2008-Q1 12,419 2,952 3,172 5,779 332 183

2008-Q2 15,181 - - 4,036 3,269 7,230 424 225

Policy Holders by Type Policy Holders by Gender

1,800 0% 0% 1,600

) 1,400

33% s ’

0 1,200 0

0 59% ( 1,000 s

r 63% e

Health v 800 a S Agricultural/Livestock 600 Female e v i

Life t 400 Male 0% c 41% 67% Property A 200 37% Other 0 2008-Q1 2008-Q2 Quarter

07 SUMMARY OF MICRO-INSURANCE PROVISION (All Pakistan)

Policy Holders by Urban/Rural Sum Insured by Peer Group

1,800 16,000 1% 3% 1,600 ) 14,000 n o i l

l 1% ) 1,400 i

s 12,000

’ 3% M

0 1,200 50% 48% CFI 0 R

0 10,000 K (

45% 1,000 P 47% NGO s (

r d

e 8,000 e v 800 RSP r a u

S 6,000 s 600 Rural 21% MFI e n I v 25% i

t 400 50% Urban 4,000 MFB 55% m c u A 200 S 27% 2,000 24% 0 0 2008-Q1 2008-Q2 2008-Q1 2008-Q2 Quarter Quarter

OUTREACH (District Level)

BALOCHISTAN

Potential Number of District MFP Microcredit Micro-Savings Micro-Insurance Microfinance Branches/Units Market

Gross Loan Portfolio Value of Savings Sum Insured Policy Holders Fixed Mobile Active Borrowers (PKR) Active Savers (PKR) (PKR) Awaran 26,054 Barkhan KB 1 0 1,025 7,013,780 - - 39 388,200 31,881 Bolan 66,423 Chagai1 54,814 Dera Bugti 43,770 FMFBL Gwadar KB 5 0 2,102 13,191,928 8,051 1,557,493 1,143 11,566,661 55,537 NRSP POMFB Jafarabad KB 1 0 2,408 28,700,380 - - 1,891 23,317,000 121,911 Jhal Magsi 29,887 Kalat 53,884 Kech (Turbat) NRSP 4 0 19 247,743 29,957 6,756,973 40 600,000 92,271 Kharan 47,948 Khuzdar 104,104 Kohlu 26,910 Lasbela 84,637 Loralai KB 2 0 1,973 12,727,782 - - 248 2,639,500 76,879 Mastung KB 1 0 405 2,560,629 - - 34 371,100 41,317 Musakhel 27,545 Nasirabad KB 1 0 2,063 21,715,802 - - 1,522 16,043,300 75,783 Nushki3 - Panjgur 51,074 Pishin KB 1 0 1,334 10,019,871 - - 74 786,000 100,179 Qila Abdullah 115,112 Qila Saifullah 44,345

FMFBL Quetta KB 6 0 5,014 28,147,454 1,073 65,600,000 1,421 13,892,385 174,437 OPP Sherani3 - Sibi 1 0 2,070 13,939,257 - - 267 2,837,300 48,944 Washuk - Zhob4 1 0 776 4,561,616 - - 48 528,100 53,848 Ziarat 1 0 19 70,748 - - - - 7,268 Total 25 0 19,208 142,896,990 39,081 73,914,466 6,727 72,969,546 1,656,762

08 MicroWATCH

OUTREACH (District Level)

NWFP

Potential Number of District MFP Microcredit Micro-Savings Micro-Insurance Microfinance Branches/Units Market

Gross Loan Portfolio Value of Savings Sum Insured Policy Holders Fixed Mobile Active Borrowers (PKR) Active Savers (PKR) (PKR) KB Abbottabad 32 0- 4,6545,159 21,063,72025,080,849 26,3162,122 3,594,6421,058,112 1,2192,417 17,752,0001,926,500 180,672180,672 Abbottabad SDFSRSP Bannu SRSP 167,380 BannuBatgram KB 1 0 783 1,941,793 - - 444 1,514,000 167,38058,257 BatgramBuner (Daggar) KB 2 - 1,021 2,631,747 19,319 83,365 409 1,528,000 133,17158,257 SDFBRAC BunerCharsadda (Daggar) KB 20 0 13,298 141,707,49 0 9,665 1,168,201 11,287 161,291,700 133,171271,736 BRACNRSP 14 - 11,835 121,539,948 9,859 802,080 9,819 142,679,000 271,736 Charsadda KBBOK Chitral 6 0 8,344 169,589,795 12,337 217,464,225 7,486 143,400,891 84,846 NRSPFMFBL Chitral BOK D.I. Khan 62 0- 7,7525,626 154,097,33568,663,321 9,659- 199,727,502 - 6,8292,103 123,665,56426,883,000 221,32884,846 FMFBLKB D.I. Khan BOKSRSP Hangu 21 0- 5,942253 74,907,615 361,204 1,600- 801,600 - 872- 10,071,900 - 221,32864,648 KB Hangu SRSP Haripur BOKKB 431 0- 4,9925,103399 43,818,44057,749,2141,107,242 49,4421,6002,190 6,824,2391,098,192801,600 525856- 5,651,6009,373,100 - 103,830103,83064,648 Haripur KBSRSP Karak SDFKB 1 0 2,053 14,880,959 - - 838 8,675,500 102,174 SRSPBOK KarakKohat KB 31 0- 1,5605,997 10,418,63337,139,148 2,460- 1,234,464 - 434734 4,490,0008,107,900 102,174114,908 BOKSRSP 3 - 6,165 38,823,324 2,464 1,234,464 666 7,069,500 114,908 KohatKohistan KB 1 0 365 713,200 - - 280 840,000 73,374 Lakki Marwat SRSP 107,505 KohistanLower Dir KB 1 - 217 306,500 - - 86 258,000 176,66073,374 Lakki Marwat KB Malakand 20 0 11,653 157,690,995 32,696 4,751,168 9,806 143,312,000 107,505106,429 Lower Dir NRSP 176,660 Malakand KB Mansehra 212 0- 10,8815,032 143,124,21321,671,615 15,722- 1,792,879 - 9,2921,512 135,836,200 6,055,000 106,429271,288 NRSPPOMFB KBBOK Mansehra Mardan POMFBKB 453 0- 40,9795,106 440,582,74518,695,884 14,06227,093 9,789,3567,565,888 36,1262,946 538,017,2014,726,2350 271,288354,988 SDFNRSP BOK 5 BOK MardanMingora 452 0- 37,3732,063 381,473,93322,388,106 33,840- 6,277,194 - 32,976 729 492,191,700 7,769,900 354,988 - KB NRSPBRAC 5 Mingora BOKKB 2 - 1,702 18,837,963 - - 380 4,133,700 - Nowshera 19 0 18,337 158,383,152 1,696 849,696 10,091 134,919,900 201,208 KBNRSP BRACSRSP 11 - 8,996 65,352,784 1,632 817,632 1,803 12,432,700 201,208 Nowshera KBBOK SRSPBRAC BOKKB 17 - 15,115 136,281,239 7,234 841,680 6,261 84,145,400 451,548 BRACOLP Peshawar 13 0 10,320 84,735,244 1,820 913,824 2,345 24,209,800 451,548 Peshawar KBSRSP NRSP OLP SRSP Shangla KB 1 0 730 4,306,008 - - 486 3,743,000 116,366 KB Swabi NRSP 13 2 12,094 125,581,417 13,479 3,571,274 8,473 124,290,800 230,073 SWWS Swat6 NRSP 9 0 3,582 35,343,643 4,945 751,607 603 9,045,000 286,555 Tank 62,446 Upper Dir 142,427 Total 164 2 151,771 1,568,509,898 112,103 241,228,251 96,616 1,363,375,191 4,083,817

09 OUTREACH (District Level)

PUNJAB

Potential Number of District MFP Microcredit Micro-Savings Micro-Insurance Microfinance Branches/Units Market

Gross Loan Portfolio Value of Savings Sum Insured Policy Holders Fixed Mobile Active Borrowers (PKR) Active Savers (PKR) (PKR) KASHF KB Attock 58 0 19,292 171,380,016 44,683 92,125,052 12,695 164,899,737 262,870 NRSP POMFB

FMFBL KASHF Bahawalpur KB 34 0 97,052 1,544,897,594 105,419 253,793,442 82,340 1,208,307,479 461,777 NRSP TMFB

Bhakkar KB 33 0 20,791 197,701,473 41,919 26,572,765 24,376 357,030,000 252,453 NRSP

Bhawalnagar KB 9 0 50,743 848,630,015 49,655 96,147,204 44,635 656,372,800 427,843 NRSP KB Chakwal NRSP 38 0 14,180 138,301,377 32,360 69,739,411 8,759 129,340,900 219,565 POMFB FMFBL D.G. Khan KB 20 0 24,620 335,864,469 28,839 69,809,831 18,562 257,575,959 419,252 NRSP

AKHUWAT ASASAH FMFBL KASHF Faisalabad KB 79 0 96,852 828,188,535 38,896 34,653,752 92,844 477,31 1,570 1,096,924 NRSP PRSP RCDS TMFB

ASASAH FMFBL JWS KASHF KB Gujranwala 41 0 60,779 770,788,634 33,306 31,232,376 73,710 615,528,263 735,741 NRSP OPD OPP7 PRSP TMFB

AKHUWAT KASHF KB Gujrat 13 0 12,941 118,982,829 12,049 6,317,321 14,826 82,047,242 446,630 NRSP PRSP TMFB KASHF Hafizabad KB 6 0 8,844 71,885,170 7,020 1,215,604 8,816 41,856,361 231,170 PRSP AKHUWAT FMFBL KASHF Jhang 15 0 20,241 169,640,537 13,817 18,925,954 23,042 144,737,123 626,546 KB NRSP PRSP KB Jhelum 32 0 14,176 128,103,870 16,387 16,775,766 10,813 160,595,400 170,498 NRSP ASASAH CSC DAMEN FMFBL KASHF Kasur 30 0 51,408 468,133,263 8,009 13,590,477 60,644 418,979,067 586,427 KB OLP PRSP RCDS TMFB

10 MicroWATCH

OUTREACH (District Level)

PUNJAB

Potential Number of District MFP Microcredit Micro-Savings Micro-Insurance Microfinance Branches/Units Market

Gross Loan Portfolio Value of Savings Sum Insured Policy Holders Fixed Mobile Active Borrowers (PKR) Active Savers (PKR) (PKR) AKHUWAT ASASAH KASHF Khanewal 13 0 26,637 299,963,103 26,257 14,569,480 34,029 302,845,411 432,948 KB NRSP PRSP KASHF KB Khushab 25 0 20,053 174,124,338 45,169 48,373,214 24,706 302,665,158 235,163 NRSP OPP AKHUWAT ASASAH BOK BRAC CSC DAMEN FMFBL Lahore 125 0 174,020 1,727,335,260 38,916 76,496,483 210,879 1,482,038,543 872,760 KASHF KB NRSP OLP OPP PRSP TMFB

Layyah KB 4 0 13,285 147,709,595 14,020 2,054,557 4,837 64,377,200 263,251 PRSP AKHUWAT FMFBL Lodhran 12 0 27,073 509,304,527 40,327 86,107,489 22,844 333,090,100 261,693 KB NRSP KASHF Mandi Bahauddin KB 6 0 8,787 61,130,939 10,914 2,603,259 6,516 20,347,950 298,371 PRSP

Mianwali KB 31 0 21,735 189,341,118 21,006 1,965,915 22,949 342,378,600 252,413 NRSP AKHUWAT ASASAH BRAC FMFBL Multan KASHF 65 0 69,753 729,943,688 45,230 117,227,770 51,385 456,412,139 689,339 KB NRSP OLP PRSP KB Muzaffargarh NRSP 5 0 7,500 80,077,100 18,308 2,905,699 7,811 106,324,700 570,580 PRSP DAMEN Nankana Sahib8 7 - 5,219 193,981,662 - - 244 1,881,612 - RCDS KB Narowal NRDP 9 - 9,092 135,464,482 24,124 2,277,242 1,351 15,955,700 268,902 PRSP ASASAH DAMEN Okara FMFBL 11 0 18,617 166,203,618 17,279 14,458,678 18,787 112,445,135 509,842 KASHF KB PRSP TMFB ASASAH KASHF Pakpattan KB 8 0 22,669 310,015,552 21,488 11,408,138 25,159 267,981,166 281,988 NRSP PRSP FMFBL KASHF Rahimyar Khan KB 39 0 36,841 538,075,776 23,723 88,234,708 37,431 354,046,606 585,705 NRSP TMFB KB Rajanpur 7 0 25,707 374,578,003 20,731 54,596,516 16,002 224,813,500 260,436 NRSP

11 OUTREACH (District Level)

PUNJAB

Potential Number of District MFP Microcredit Micro-Savings Micro-Insurance Microfinance Branches/Units Market

Gross Loan Portfolio Value of Savings Sum Insured Policy Holders Fixed Mobile Active Borrowers (PKR) Active Savers (PKR) (PKR)

AKHUWAT FMFBL KASHF Rawalpindi KB 78 0 52,052 439,886,487 45,600 74,144,165 23,231 201,500,569 327,457 NRSP OPP9 POMFB ASASAH BRAC FMFBL KASHF Sahiwal 20 0 31,063 317,009,920 29,110 12,559,689 36,617 279,305,098 395,468 KB NRSP OLP PRSP KASHF KB Sargodha 28 0 35,941 328,939,563 27,970 3,667,427 42,928 297,484,487 671,679 NRSP PRSP AKHUWAT DAMEN KASHF Sheikhupura KB 20 0 28,726 378,807,090 6,069 1,133,525 30,028 211,579,979 831,522 OLP PRSP RCDS KASHF KB Sialkot 26 0 17,312 163,398,932 29,989 8,221,952 5,699 62,837,541 501,997 NRSP PRSP KASHF KB Toba Tek Singh 9 0 20,740 227,389,212 23,400 2,827,497 20,906 191,769,720 309,316 NRSP PRSP

ASASAH FMFBL KASHF Vihari 12 0 24,155 291,659,920 28,907 28,263,008 23,976 243,473,448 475,398 KB NRSP OLP Total 968 0 1,188,896 13,576,837,667 990,896 1,384,995,367 1,144,377 10,590,136,263 15,233,924

SINDH

Potential Number of District MFP Microcredit Micro-Savings Micro-Insurance Microfinance Branches/Units Market

Gross Loan Portfolio Value of Savings Sum Insured Policy Holders Fixed Mobile Active Borrowers (PKR) Active Savers (PKR) (PKR) FMFBL KB Badin NRSP 9 0 10,185 121,966,989 45,734 34,359,936 8,567 114,715,810 294,781 POMFB FMFBL KB Dadu OLP OPP10 19 0 11,211 113,446,385 33,426 39,566,455 12,088 32,650,381 447,305 TRDP Ghotki FMFBL 3 0 8,987 109,393,475 3,124 12,239,200 6,121 77,904,406 248,442 KB FMFBL KB NRSP Hyderabad11 OPP 34 0 34,196 364,315,807 19,307 97,198,889 30,805 426,534,218 517,652 POMFB SAFWCO TMFB

12 MicroWATCH

OUTREACH (District Level)

SINDH

Potential Number of District MFP Microcredit Micro-Savings Micro-Insurance Microfinance Branches/Units Market

Gross Loan Portfolio Value of Savings Sum Insured Policy Holders Fixed Mobile Active Borrowers (PKR) Active Savers (PKR) (PKR)

Jacobabad FMFBL 4 0 10,651 127,823,854 1,445 71,864,300 4,322 55,917,321 361,146 KB 12 Jamshoro TRDP 3 0 891 7,602,754 10,070 8,052,290 - - FMFBL KASHF KB NMFB NRSP Karachi13 106 1 95,640 889,295,892 68,014 1,641,299,984 94,337 588,078,135 1,329,990 OLP OPP POMFB RMFB TMFB FMFBL

14 KB Khairpur 9 0 25,364 319,342,236 25,872 57,190,489 24,746 157,841,706 401,853 OPP TRDP FMFBL Larkana 6 0 16,015 199,218,530 1,216 18,505,400 12,686 160,514,398 534,891 KB FMFBL

15 NRSP Matyari 7 0 13,217 142,551,532 14,339 10,047,957 10,960 112,393,706 - OPP SAFWCO FMFBL KB Mirpur Khas16 NRSP 11 0 15,391 177,478,633 38,556 14,546,153 12,668 177,005,530 210,494 POMFB TMFB

FMFBL Naushahro 2 0 10,298 100,097,334 879 11,389,100 3,290 39,690,128 266,462 Feroze KB OPP

FMFBL KB Nawabshah NRSP 5 1 17,939 210,995,174 4,662 19,403,121 10,831 115,607,249 225,430 OPP SAFWCO

FMFBL KB Sanghar OLP 10 1 19,578 176,749,370 201 6,586,000 13,840 26,834,149 354,133 OPP SAFWCO Sehwan Sharif KB 1 0 2,004 15,346,849 - 135 1,656,200 - Shehdad Kot - FMFBL Shikarpur 2 0 1,201 11,791,804 - 946 9,824,435 237,633 KB FMFBL Sukkur KB 7 0 10,735 111,287,928 1,747 13,365,400 5,562 62,639,008 213,080 OPP

FMFBL

17 KB Tando Allahyar 4 0 8,484 87,570,521 13,607 52,867,400 5,516 64,018,197 - NRSP POMFB FMFBL Tando KB 4 0 6,863 82,349,640 7,194 14,465,817 6,021 77,994,993 - Muhammad Khan NRSP POMFB FMFBL Tharparkar KB 22 0 11,375 97,215,189 119,630 123,676,251 10,895 21,554,706 245,046 TRDP FMFBL Thatta KB 5 0 5,405 55,970,370 14,660 24,252,316 3,751 47,795,000 283,491 NRSP FMFBL

Umer Kot OPP 14 0 8,765 86,862,673 33,510 69,391,022 10,297 13,921,491 185,966 TRDP Total 287 3 34 4 , 3 9 5 3,60 8 , 6 7 2 , 9 3 9 457,193 2,340,267,48 0 288,384 2 , 3 8 5,091,167 6,357,795

13 OUTREACH (District Level)

AZAD JAMMU AND KASHMIR (AJK)

Potential Number of District MFP Microcredit Micro-Savings Micro-Insurance Microfinance Branches/Units Market18

Gross Loan Portfolio Value of Savings Sum Insured Policy Holders Fixed Mobile Active Borrowers (PKR) Active Savers (PKR) (PKR) Bagh NRSP 6 0 1,360 9,379,814 22,033 6,165,271 700 10,500,000 - Bhimber KB 1 0 1,341 4,436,542 - - 618 2,761,600 - Kotli NRSP 11 0 5,313 41,670,618 15,807 3,194,849 5,794 86,910,000 - Mirpur -

Muzaffarabad KB 9 0 7,691 43,860,997 7,983 2,578,273 3,696 39,613,000 - NRSP

Neelum FMFBL 2 0 1,395 19,795,791 2,461 11,280,000 1,314 19,841,291 - KB

Poonch KB 4 0 1,914 9,035,622 31,557 9,087,064 1,101 11,269,000 - NRSP Sudhnati NRSP 1 0 453 3,739,744 7,182 1,619,036 494 7,410,000 - Total 34 0 19,467 131,919,128 87,023 33,924,493 13,717 178,304,891 -

FEDERALLY ADMINISTRATED NORTHERN AREAS (FANA)

Potential Number of District MFP Microcredit Micro-Savings Micro-Insurance Microfinance Branches/Units Market19

Gross Loan Portfolio Value of Savings Sum Insured Policy Holders Fixed Mobile Active Borrowers (PKR) Active Savers (PKR) (PKR) Astore FMFBL 1 0 2, 34 2 56,452,798 1,751 13,744,000 2,342 56,452,798 - Diamer FMFBL 0 0 ------Ghanche FMFBL 2 0 2, 87 3 68,411,453 3,519 80,424,000 2,873 68,411,453 - Ghizer FMFBL 5 0 5, 60 5 114,252,544 8,926 59,707,000 5,605 114,252,544 - Gilgit FMFBL 4 0 6, 84 3 162,148,888 14,153 145,509,000 6,843 162,148,888 - Skardu FMFBL 3 0 6, 04 7 131,960,259 5,770 86,315,000 6,047 131,960,259 - Total 15 0 23 ,7 10 533,225,942 34,119 385,699,000 23,710 533,225,942 -

FEDERALLY ADMINISTRATED TRIBAL AREAS (FATA)

Potential Number of District MFP Microcredit Micro-Savings Micro-Insurance Microfinance Branches/Units Market20

Gross Loan Portfolio Value of Savings Sum Insured Policy Holders Fixed Mobile Active Borrowers (PKR) Active Savers (PKR) (PKR) Bajaur KB 1 0 221 1,964,239 - - 149 1,490,000 - Khyber KB 1 0 804 4,685,185 - - 170 1,769,900 - Kurram KB 1 0 944 9,128,509 - - 353 3,672,700 - Mohmand KB 1 0 295 2,625,050 - - 169 1,690,000 - North Waziristan - Orakzai KB 0 0 251 2,428,136 - - 254 2,540,000 - South Waziristan - Total 4 0 2 , 5 1 5 2 0 , 8 3 1 , 1 1 9 - - 1,095 11,1 62,600 -

ISLAMABAD CAPITAL TERRITORY (ICT)

Potential Number of District MFP Microcredit Micro-Savings Micro-Insurance Microfinance Branches/Units Market

Gross Loan Portfolio Value of Savings Sum Insured Policy Holders Fixed Mobile Active Borrowers (PKR) Active Savers (PKR) (PKR) FMFBL Islamabad NRSP 13 0 4,156 65,150,567 12,535 231,931,063 1,755 48,358,013 74,750 POMFB

14 MicroWATCH

OUTREACH (ALL PAKISTAN)

Potential Penetration Rate Micro-Savings Province Offices Microcredit Micro-Insurance Microfinance (%) Market

Active Gross Loan Value of Savings Policy Sum Insured Fixed Mobile Active Savers Borrowers Portfolio (PKR) Holders (PKR) (PKR) Balochistan 25 - 19,208 142,896,990 39,081 73,914,466 6,727 72,969,546 1,656,762 1.16 N.W.F.P 164 2 151,771 1,568,509,898 112,103 241,228,251 96,616 1,363,375,191 4,083,817 3.72 Punjab 968 - 1,188,896 13,576,837,667 990,896 1,384,995,367 1,144,377 10,590,136,263 15,233,924 7.80 Sindh 287 3 344,395 3,608,672,939 457,193 2,340,267,480 288,384 2,385,091,167 6,357,795 5.42 AJK 34 - 19,467 131,919,128 87,023 33,924,493 13,717 178,304,891 - - FANA 15 - 23,710 533,225,942 34,119 385,699,000 23,710 533,225,942 - - FATA - 2,515 20,831,119 - - 1,095 11,162,600 - - ICT 13 - 4,156 65,150,567 12,535 231,931,063 1,755 48,358,013 74,750 5.56

Grand Total 1,510 5 1,754,118 19,648,044,250 1,732,950 4,691,960,120 1,576,381 15,182,623,613 27,407,048 6.40

OTHER NEWS ITEMS Kashf receives license whereas NRSP receives NOC ASA-Pakistan starts business in the country to set up their respective MFBs ASA-Pakistan began its operations in the country in September. ASA is Kashf Foundation was issued a license to set up a national level recognized internationally as one of the leading microfinance microfinance bank (MFB) by the . The Kashf institutions of Bangladesh, which now has a global presence. It also Microfinance Bank (KMB) will start operations by the end of 2008 and has extensive experience in providing technical assistance to various is expected to offer a full range of finance products and services, emerging microfinance institutions across the globe. ASA-Pakistan has including credit for working capital, household needs, home registered as a for-profit company and is currently operating four improvement, transportation and emergency financing and deposit branches in Karachi. products such as checking, saving, certificates of deposit and a To learn more about the organization, please visit www.asabd.org program saving account. The Bank will commence operations with the purchase of a portfolio of approximately 15,000 individual loans totaling Rs. 337 million from the Kashf Foundation. These loans were provided through the Kashf Foundation's Business Sarmaya Loan (BSL) product, which has grown steadily since its creation in 2005.

In a similar development, the National Rural Support Programme (NRSP), the largest microfinance service provider in the country, received an NOC from the central bank for setting up its microfinance bank as well.

2nd International Conference on Microfinance held in Islamabad The second international conference on microfinance was held on the 28th of August in Islamabad. The one-day event was organized by Shamrock Conferences International. Federal Minister for Finance, Mr. Naveed Qamar inaugurated the event as the chief guest. Speakers included representatives of SBP, MFPs, donor organizations, PPAF, and development and research institutions who highlighted the various issues and challenges faced by the sector on various fronts including regulation, expanding outreach, funding strategies, portfolio quality and business development.

15 END NOTES

1 Chagai district was divided into two districts (Nushki and Chagai) in 2005. The potential microfinance market estimate for Chagai is therefore an overestimation (aggregate of potential markets for Nushki and Chagai). 2 Population data for Nushki district is not available. Nushki was carved out of Chagai district in 2005. Thus, the potential microfinance market estimate for Chagai is an aggregate of the potential market for Chagai and Nushki. 3 Population data for Sherani district is not available, Sherani was carved out of Zhob district in 2005 4 Zhob was divided into two districts (Zhob and Sherani) in 2005, The potential microfinance market estimate for Zhob is therefore an overestimation (aggregate of potential markets for Zhob and Sherani). 5 Population data for Mingora district is not available. Mingora was carved out of Swat district in 2005. Thus, the potential microfinance market estimate for the district of Swat is an aggregate of the potential market for Mingora and Swat. 6 Swat district was divided into two districts (Swat and Mingora) in 2005. The potential market estimate for Swat is therefore an overestimation (aggregate of potential markets for Mingora and Swat). The estimate is based on 1998 DCR population data available for Swat. 7 OPP does not provide retail microcredit services in Gujranwala and Khushab. It wholesales funds to partner organizations: Mehran Education Welfare Society, and Soan Valley Development Program, respectively. 8 Population data for the district of Nankana Sahib is not available. The district was carved out of Sheikhupura district in 2005. Thus, the estimate for the district of Sheikhupura is an aggregate of the potential market for Sheikhupura and Nankana Sahib (based on 1998 DCR population data available for Sheikhupura). 9 OPP does not provide retail microcredit services in Rawalpindi. It wholesales funds to a partner organization: Alfalah Development Organization. 10 OPP does not provide retail microcredit services in Dadu. It wholesales funds to a partner organization: Soofi Shah Inayat Shaheed Sanghat. 11 Hyderabad district was divided into four districts in 2006. These are Hyderabad, Matyari, Tando Muhammad Khan, and Tando Allahyar. Thus, the potential microfinance market estimate for Hyderabad is an aggregate of all four resulting districts (based on 1998 DCR population data available for Hyderabad). 12 Population data for Jamshoro district is not available. The district is new and was carved out of Dadu district in 2006. Thus, the estimate for Dadu also includes the estimate for the recently created Jamshoro district. 13 The market estimate for Karachi is the aggregate of four districts namely, Central, West, East, and South. 14 OPP does not provide retail microcredit services in Khairpur. It wholesales funds to partner organizations: Khaiji Cooperative Society, Goth Seenghar, and Marvi Rural Development Organization. 15 Population data for Matyari district is not available. The district was carved out of Hyderabad district in 2006. Thus, the estimate for Hyderabad also includes the estimate for the recently created Matyari district. 16 OPP does not provide retail microcredit services in Mirpur Khas, Nawabshah, Naushahro Feroze, Thatta and Umer Kot. It wholesales funds to a number of partner organizations: Sindh Rural Partner Organization; Shah Sachal Sami Welfare Association; Village Welfare Society; Sindh Community Development Organization; Ghulam Qadir Group; and Shama Roshan Social Welfare Development Organization, respectively. 17 Population data for districts Tando Allahyar and Tando Muhammad Khan is not available. The districts were carved out of Hyderabad district in 2006. Thus, the microfinance market estimate for Hyderabad is an aggregate of the potential markets in the recently created Tando Allahyar, Matyari and Tando Muhammad Khan districts. 18 Due to unavailability of population data for the Azad Jammu and Kashmir (AJK) districts, the potential microfinance market could not be estimated. 19 Due to unavailability of population data for the Federally Administered Northern Areas (FANA) the potential microfinance market could not be estimated. 20 Due to unavailability of population data for the Federally Administered Tribal Areas (FATA), the potential microfinance market could not be estimated.

REPORTING ORGANIZATIONS

Reporting Period Category MFP Quarter 1 Quarter 2 2008 2008 MFB Khushhali Bank (KB) Microfinance Bank licensed and Network MicroFinance Bank Ltd. (NMFB) prudentially regulated by the State Bank Pak-Oman Microfinance Bank Ltd. (POMFB) of Pakistan to exclusively service Rozgar Microfinance Bank Ltd. (RMFB) microfinance market Tameer Microfinance Bank Ltd. (TMFB) The First MicroFinanceBank Ltd. (FMFB) MFI Akhuwat Microfinance institution providing Asasah specialized microfinance services Kashf Foundation Orangi Pilot Project (OPP) Sindh Agricultural and Forestry Workers Cooperative Organization (SAFWCO) RSP Lachi Poverty Reduction Project (LPRP) Rural support programme running National Rural Support Programme (NRSP) microfinance operation as part of multi- Punjab Rural Support Programme (PRSP) dimensional rural development Sarhad Rural Support Programme (SRSP) programme Thardeep Rural Development Programme (TRDP) NGO Centre for Women Cooperative Development (CWCD) Non-government organization running Community Support Concern (CSC) microfinance operations as part of multi- Development Action for Mobilization and Emancipation (DAMEN) dimensional developed programme Jinnah Welfare Society (JWS) Narowal Rural Development Programme (NRDP) Organization for Participatory Development (OPD) Rural Community Development Society (RCDS) Save the Poor (STP) Sindh Rural Support Program (Srsp) Sungi Development Foundation (SDF) Swabi Women’s Welfare Society (SWWS) Taraqee Foundation (TF) CFI ORIX Leasing Pakistan Ltd. (OLP) Commercial financial institution Bank of Khyber (BOK) providing microfinance services as separate function

Author: Aban Haq Pakistan Microfinance Network Secretariat Data Collection and Compilation: Moazzam Iqbal Hs 38-B, Street 33, F 8/1, Islamabad, Pakistan Design & Layout: Sumaira Sagheer Tel: +92 (51) 2816139-41, Fax: +92 (51) 2854702 Printed at Pangraphics Email: [email protected] Copyrights © Oct 2008 Pakistan Microfinance Network www.pmn.org.pk 16