DOCSLIB.ORG

Expanding Access to Credit for Women: Report And

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
Expanding Access to Credit for Women: Report And Report and Recommendation of the President to the Board of Directors Project Number: 52124-001 January 2019 Proposed Loan Kashf Foundation Expanding Access to Credit for Women (Pakistan) This is an abbreviated version of the document approved by ADB's Board of Directors that excludes information that is subject to exceptions to disclosure set forth in ADB's Access to Information Policy. CURRENCY EQUIVALENTS (as of 12 November 2018) Currency unit – Pakistan rupee/s (PRe/PRs) PRe1.00 = $0.0075 $1.00 = PRs133.83 ABBREVIATIONS ADB – Asian Development Bank BDO – business development officer GAP – gender action plan GDP – gross domestic product MFB – microfinance bank MFI – microfinance institution MSMEs – micro, small, and medium-sized enterprises NBFC – nonbanking finance company NPL – nonperforming loan PMN – Pakistan Microfinance Network SECP – Securities and Exchange Commission of Pakistan NOTES (i) The fiscal year (FY) of Kashf Foundation and of the Government of Pakistan ends on 30 June. “FY” before a calendar year denotes the year in which the fiscal year ends, e.g., FY2018 ends on 30 June 2018. (ii) In this report, “$” refers to United States dollars. Vice-President Diwakar Gupta, Private Sector and Cofinancing Department Director General Michael Barrow, Private Sector Operations Department (PSOD) Director Christine Engstrom, Financial Institutions Division, PSOD Team leader Tina Rohner, Investment Specialist, PSOD Team members Pierre Bailet, Principal Counsel, Office of the General Counsel Ka Seen Gabrielle Chan, Safeguards Specialist, PSOD Asif Cheema, Principal Investment Specialist, PSOD Shaheryar Ali Choudhry, Senior Investment Officer, Pakistan Resident Mission, PSOD Tarang Khimasia, Senior Guarantees and Syndications Specialist, PSOD Manfred Kiefer, Senior Economist, PSOD Mohsin Monnoo, Senior Investment Specialist (Syndications), PSOD Raneliza Samiano, Safeguards Officer, PSOD Grachelle Talicuran, Associate Safeguards Officer (Environment), PSOD In preparing any country program or strategy, financing any project, or by making any designation of or reference to a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area. CONTENTS Page PROJECT AT A GLANCE I. THE PROPOSAL 1 II. THE FINANCIAL INTERMEDIARY 1 A. Investment Identification and Description 1 B. Business Overview and Strategy 3 C. Ownership, Management, and Governance 4 III. THE PROPOSED ADB ASSISTANCE 5 A. The Assistance 5 B. Implementation Arrangements 5 C. Value Added by ADB Assistance 6 IV. DEVELOPMENT IMPACT AND STRATEGIC ALIGNMENT 6 A. Development Impact, Outcome, and Outputs 6 B. Alignment with ADB Strategy and Operations 6 V. POLICY COMPLIANCE 7 A. Safeguards and Social Dimensions 7 B. Anticorruption Policy 8 C. Assurances 8 VI. RECOMMENDATION 8 APPENDIXES 1. Design and Monitoring Framework 9 2. List of Linked Documents 11 Project Classification Information Status: Complete PROJECT AT A GLANCE 1. Basic Data Project Number: 52124-001 Project Name Expanding Access to Credit for Department PSOD/PSFI Women /Division Country Pakistan Borrower Kashf Foundation (KF) qq 2. Sector Subsector(s) ADB Financing ($ million) Finance Inclusive finance 15.00 Total 15.00 qq 3. Strategic Agenda Subcomponents Climate Change Information Inclusive economic Pillar 2: Access to economic Climate Change impact on the Project Low growth (IEG) opportunities, including jobs, made more inclusive Qq 4. Drivers of Change Components Gender Equity and Mainstreaming Private sector Promotion of private sector Gender equity (GEN) development (PSD) investment qq 5. Poverty and SDG Targeting Location Impact Geographic Targeting No Rural High Household Targeting No Urban Medium SDG Targeting Yes SDG Goals SDG1, SDG5, SDG10 qq 6. Nonsovereign Operation Risk Rating Obligor Name Obligor Risk Rating Facility Risk Rating Kashf Foundation (KF) 7. Safeguard Categorization Environment: FI-C Involuntary Resettlement: Indigenous Peoples: FI-C FI-C Qq 8. Financing Modality and Sources Amount ($ million) ADB 15.00 Nonsovereign LIBOR Based Loan (Regular Loan): Ordinary capital resources 15.00 Cofinancing 10.00 Others 10.00 Others a 0.00 Total 25.00 Currency of ADB Financing: USD a Derived by deducting ADB financing and Cofinancing from Total Project Cost. Source: Asian Development Bank This document must only be generated in eOps. 19112018155500972171 Generated Date: 07-Jan-2019 8:51:54 AM I. THE PROPOSAL 1. I submit for your approval the following report and recommendation on a proposed loan of up to $25,000,000, comprising (i) an A loan of up to $15,000,000 and (ii) a B loan of up to $10,000,000, to Kashf Foundation for Expanding Access to Credit for Women in Pakistan. The B loan will be syndicated by the Asian Development Bank (ADB) to impact investors and other eligible participants on a best-effort basis, subject to market conditions. 2. The loan will support Kashf Foundation’s lending to low-income women, female micro- and small entrepreneurs and low-cost schools in Pakistan. An increase in Kashf Foundation’s capacity to provide critically needed financial products to this underserved segment will (i) significantly improve the financial access of women, especially those belonging to poor rural households; and (ii) help improve and sustain their livelihood and incomes. The ADB loan will also support the diversification of Kashf Foundation’s funding base and strengthen its balance sheet by providing longer-tenor financing, thereby enabling it to provide longer-maturity financial products to its clients. II. THE FINANCIAL INTERMEDIARY A. Investment Identification and Description 3. The long-run gross domestic product (GDP) growth of Pakistan is characterized by repeated cycles of rapid growth followed by slowdowns. After expanding at an average GDP growth rate of 6.2% during FY2003–FY2008,1 GDP growth slowed during FY2008–FY2013 to an average rate of 3.0% because of a challenging investment climate, high inflation, and an unresolved energy crisis.2 Pakistan’s economy has gained positive momentum since FY2014, and GDP grew 5.8% in FY2018—the highest growth since FY2007.3 ADB projects GDP growth of 4.8% for FY2019, in light of the pressing need to deal with large budget and external imbalances.4 4. Finance sector. The finance sector in Pakistan is underdeveloped and characterized by low access to finance primarily because of heavy investment by banks in government securities and risk aversion of certain customer segments. Total bank assets increased 15.9% in FY2017 to PRs18,342 billion. Customer deposits grew 14.4% from PRs11,798 billion in FY2016 to PRs13,012 billion in FY2017. Net advances grew 18.4% from PRs5,499 billion in FY2016 to PRs6,512 billion in FY2017, but remain at 35.5% of total banking industry assets in Pakistan.5 The loan–deposit ratio for the Pakistan banking industry was 50.1% in FY2017 compared with 73.3% in India and 87.7% in Bangladesh. The capital adequacy ratio of the industry was 15.8% at the end of FY2017 under the Basel III standard as compared with 15.9% at the end of FY2016.6 1 Government of Pakistan, Ministry of Finance, Finance Division. 2008. Pakistan Economic Survey 2007–08. Islamabad. 2 Government of Pakistan, Ministry of Finance, Finance Division. 2016. Pakistan Economic Survey 2015–16. Islamabad. 3 Government of Pakistan, Ministry of Finance, Finance Division. 2017. Pakistan Economic Survey 2017–18. Islamabad. 4 ADB. 2018. Asian Development Outlook 2018 Update: Maintaining Stability Amid Heightened Uncertainty. Manila. 5 State Bank of Pakistan, Financial Stability Department. 2018. Quarterly Compendium: Statistics of the Banking System. Karachi. 6 Basel III is an international regulatory accord that introduced a set of reforms designed to improve the regulation, supervision and risk management within the banking sector. 2 5. Microfinance. Microfinance plays a vital role in the country’s finance sector, as it addresses market gaps. Pakistan has 52 entities with microfinance operations. These are mainly microfinance banks (MFBs), microfinance institutions (MFIs), rural support programs, and other entities with microfinance operations as part of their multidimensional service offering. MFBs provide credit; take deposits from the general public; and are regulated by the central bank, the State Bank of Pakistan. MFIs provide microcredit to clients but do not raise deposits from the general public. Rural support programs provide microcredit as part of an array of service offerings.7 6. Since 2005, microfinance has grown nearly 12 times in terms of borrowers and 29 times with respect to outstanding credit, with about equal growth from MFBs and MFIs.8 As of the second quarter of 2018, outstanding credit in the microfinance industry had reached PRs239 billion. The industry targets increasing the active borrower base of microfinance entities from 6 million in 2017 to 10 million by 2020.9 Most clients of microfinance entities are females, who constituted 53% of active borrowers as of FY2017. The urban–rural ratio of active borrowers was 47:53 during the fourth quarter of 2017.10 7. MFIs, including Kashf Foundation, are regulated by the Securities and Exchange Commission of Pakistan (SECP) and provide finance to two defined categories of borrowers: (i) Poor person. Nonbanking finance company (NBFC) regulations define a poor person as an individual with meager means of subsistence and whose total business income, excluding expenses, during a year is
Load more

Recommended publications
  • Global Agenda Council Reports 2010 Gl Global Agenda Council O
    Global Agenda Council Reports 2010 Global Agenda Council 2010 Reports Global Agenda Council Reports 2010 .weforum.org) ofit; it is tied to no political, no to tied is it ofit; -pr national organization committed to improving the improving committed to organization national The World Economic Forum is an independent an is Forum Economic World The inter partnerships in leaders engaging by world the of state and industry agendas. to shape global, regional in based and 1971, in a foundation as Incorporated is Forum Economic World the Switzerland, Geneva, not-for and impartial partisan or national interests. (www partisan or national interests. Global_Agenda_SRO_Layout 1 13.01.10 10:29 Page3 Global Agenda Council Reports 2010 Summaries of Global Agenda Council Discussions from the Summit on the Global Agenda 2009 Global_Agenda_SRO_Layout 1 13.01.10 10:29 Page4 This publication is also available in electronic form on the World Economic Forum’s website at the following address: The Global Agenda 2010 Web version: www.weforum.org/globalagenda2010 (HTML) The book is also available as a PDF: www.weforum.org/pdf/globalagenda2010.pdf Other specific information on the Network of Global Agenda Councils can be found at the following links: www.weforum.org/globalagenda2010 www.weforum.org/globalagenda2009/interviews www.weforum.org/globalagenda2009/reports www.weforum.org/globalagenda2009/webcasts The opinions expressed and data communicated in this publication are those of Global Agenda Council Members and do not necessarily reflect the views of the World Economic Forum. World Economic Forum 91-93 route de la Capite CH-1223 Cologny/Geneva Switzerland Tel.: +41 (0)22 869 1212 Fax: +41 (0)22 786 2744 E-mail: [email protected] www.weforum.org © 2010 World Economic Forum All rights reserved.
    [Show full text]
  • Kashf Foundation Chairman: Dr
    JCR-VIS Credit Rating Company Limited Rating Report Affiliate of Japan Credit Rating Agency, Ltd. Kashf Foundation Chairman: Dr. Ishrat Hussain; President : Ms. Roshaneh Zafar June 17, 2008 Analysts : Sobia Maqbool Rating Rationale Naveen Hasan Kashf Foundation (KF) ventured into microfinance in 1996. While the foundation operates in the absence of complete supervisory regime, unlike the MFIs operating in Category Latest Previous the regulated sector, it has adopted sound governance practices on a voluntary basis and Entity BBB+/A-3 BBB+/A-3 financial disclosures are also considered adequate. Integral to the business strategy of KF Apr 3, ’08 Jun 20 , ’0 7 is achieving its social mission of alleviating povert y by providing quality and cost TFC-1 A A effective microfinance services to low income households, especially women, in order to Rs. 720m Apr 3, ’08 Jun 20, ‘07 enhance their economic role and decision-making capacity. The management and Board Outlook Stable Positive of Directors actively monitor progress against defined targets. Apr 3, ’08 Jun 20 , ’07 In the outgoing year, the foundation has embarked upon an aggressive, growth-oriented Key Financial Trends financial plan, while maintaining sound asset quality indicators. This has exemplified in the asset base which has increased rapidly to Rs. 4.06b (FY06: Rs. 2.0b) as at December 225 31, 2007. Of this, lending operations remain the primary focus of the organization The 175 total loan portfolio stood at Rs. 3.08b as at year end FY 07 (FY06: Rs. 1.54b) Aggregate infection has remained low, with PAR-30 at less than 1% of the loan portfolio.
    [Show full text]
  • The Poverty Impact of the Khushhali Bank's Microfinance Lending In
    Serving the Poorest of the Poor: The Poverty Impact of the Khushhali Bank’s Microfinance Lending in Pakistan Heather Montgomery The views expressed in this paper are the views of the author and do not necessarily reflect the views or policies of the Asian Development Bank Institute (ADBI), the Asian Development Bank (ADB), or its Board of Directors, or the governments they represent. ADBI does not guarantee the accuracy of the data included in this paper and accepts no responsibility for any consequences of their use. Terminology used may not necessarily be consistent with ADB official terms. Introduction Although Pakistan’s economy enjoyed relatively stable growth during the 1990s poverty and income inequality continued to rise1; the most recent official estimates are that roughly one-third the population was below the poverty line at the start of the millennium. (GoP, 2003:12) (see chapter 8 for more details). In response to these widely cited figures, the government of Pakistan established poverty reduction as its overarching objective and recognizing the potential role of microfinance in alleviating poverty, embarked on a Microfinance Sector Development Program (MSDP) to broaden and deepen the microfinance sector to provide a broad range of financial services in a sustainable manner. Microfinance is still relatively new to Pakistan, both in concept and practice. Prior to embarking on the MSDP, the main providers of microfinance were NGOs2 and government sponsored rural support networks3 or, in at least one case, a traditional commercial bank with a specialized microfinance window. With the exception KASHF, a well-known NGO operating out of Lahore, none of these institutions are specialized microfinance institutions and none have demonstrated financial sustainability (Pakistan Microfinance Network (2003).4 Despite the achievements of these institutions5, total their total outreach is still less than 5% of the estimated 5.6 million poor households in Pakistan that require microfinance services (see table 9.1).
    [Show full text]
  • The Full Issue of Perspectives (Pdf 351Kb)
    The Schwab Foundation in Davos January 21-25 2004 SCHWAB FOUNDATION FOR SOCIAL ENTREPRENEURSHIP Supporting Social Entrepreneurs around the World PERSPECTIVES MY DAVOS INSIDE OUT 06.00 View from my window My badge Going to work Guards from far away Friendly guards? Elegant colleague Sunny view 07.00 Congress Center 09.00 Congress Center 11.00 Congress Center 13.00 Congress Center 15.00 Congress Center Outside clear skies! Nice stranger in the shuttle bus 17.00 Congress Center 19.00 Congress Center Last email of the day? Heading home My footprints 22.00 View from my window Welcome to the second issue of Perspectives, a periodical published by the Schwab Foundation for Social Entrepreneurship. In this issue, we have hoped to capture the “spirit of Davos” as described by Schwab Social Entrepreneurs and other participants coming into contact with them in this Alpine ski town between January 21st and 25th. Pamela Hartigan Managing Director Schwab Foundation 2 ARRIVED: SOCIAL ENTREPRENEURSHIP@DAVOS n the mid-nineties, social entrepreneurship began to visionaries seek to engage the mainstream, patience developing countries and at 15% in OECD countries. capture the imagination of development and social is on order. After three years, social entrepreneurship Creative approaches that build workable and Ipolicy practitioners. Social entrepreneurs offered a truly arrived at Davos in 2004. As one of the Schwab sustainable organizational structures to provide fresh start to solve seemingly intractable problems. Entrepreneurs pointed out, “we discerned a genuine public and private goods are urgently needed. Social shift in the general perception of social entrepreneurs are the catalysts that ensure that the Drawing on market-based mechanisms to create entrepreneurship, moving from the loony fringes benefits of international economic integration trickle positive change in the domains of education, the toward greater recognition and acceptability as a down.
    [Show full text]
  • GROWING OPPORTUNITIES for the UNBANKED
    GROWING OPPORTUNITIES for the UNBANKED ANNUAL REPORT 2006 At its inception in 1996, Kashf Foundation was the first specialized microfinance institution (MFI) in Pakistan. Furthermore, it was also the first MFI to achieve financial sustainability in 2003. Kashf Foundation has continued to innovate by creating client-driven products, by demonstrating that women in Pakistan are active economic agents and by ensuring that poor households are bankable. Kashf Foundation remains committed to establishing sound business standards and to offering innovative pro-poor financial services. This report provides a window of information into Kashf’s rapidly growing family of clients, services, products and achievements for 2006. Edited by: Aziz Omar, Nabeel Khan Design and Layout: Sumaira Sagheer Printed at: Copyrights (c) 2007 Kashf Foundation Contact Information: 19-Aibak Block New Garden Town Lahore, Pakistan Tel: +92 (42) 111 981 981 Fax: +92 (42) 584 7816 www.kashf.org GROWING OPPORTUNITIES for the UNBANKED ANNUAL REPORT 2006 Kashf’s Vision Financial Services for All Kashf’s Mission Alleviate poverty by providing quality and cost effective microfinance services to low income households, especially women in order to enhance their economic role and decision-making capacity. Growing Opportunities for the Unbanked 5 Contents Foreword .........................................................................................................................6 CEO’s Message ...............................................................................................................8
    [Show full text]
  • Microfinance for the Poorest (Financed by the Japan Fund for Poverty Reduction)
    Grant Assistance Report Project Number: 40145 January 2007 Proposed Grant Assistance Islamic Republic of Pakistan: Microfinance for the Poorest (Financed by the Japan Fund for Poverty Reduction) CURRENCY EQUIVALENTS (as of 13 December 2006) Currency Unit – Pakistan rupee/s (PRe/PRs) PRe1.00 = $0.01643 $1.00 = PRs60.88 ABBREVIATIONS ADB – Asian Development Bank BRAC – Bangladesh Rural Advancement Committee CSPU – country strategy and program update EA – executing agency FMFB – First Microfinance Bank IA – implementing agency IGVGD – Income Generation for Vulnerable Groups Development JFPR – Japan Fund for Poverty Reduction JICA – Japan International Cooperation Agency Kashf – Kashf Foundation MFB – microfinance bank MFI – microfinance institution MOF – Ministry of Finance MSDP – Microfinance Sector Development Program NGO – nongovernment organization PMI – participating microfinance institution PMU – project management unit RFSDP – Rural Finance Sector Development Program SBP – State Bank of Pakistan TOR – terms of reference ZTBL – Zarai Taraqiati Bank Limited NOTES (i) The fiscal year (FY) of the Government ends on 30 June. FY before a calendar year denotes the year in which the fiscal year ends, e.g., FY2006 ends on 30 June 2006. (ii) In this report, “$” refers to US dollars. Vice President L. Jin, Operations Group 1 Director General J. Miranda, Central and West Asia Department (CWRD) Director N. Siackhachanh, Governance, Finance, and Trade Division, CWRD Team leader S. Lewis, Financial Economist, CWRD Team member M. Hashimi, Project Implementation Officer, CWRD o 64o 00'E 73 00'E PAKISTAN MICROFINANCE FOR THE POOREST . R Project District ar un K National Capital Mastuj Provincial Capital Chitral City/Town NORTH - WEST FRONTIER Airport Dir . Dasu R t o Port a o 35 00'N w 35 00'N S National Road Saidu Sharif Batgram Malakand Other Road Buner Mansehra Batkhela Railway Charsadda Mardan Tarbela Dam Kabul R.
    [Show full text]
  • Observations and Lessons for the I-Sip Methodology from Pakistan
    INCLUSION, STABILITY, INTEGRITY, AND PROTECTION: OBSERVATIONS AND LESSONS FOR THE I-SIP METHODOLOGY FROM PAKISTAN Stefan Staschen June 2014 i Table of Contents List of Acronyms .......................................................................................................................................... iii Acknowledgments ....................................................................................................................................... iv 1. Introduction .......................................................................................................................................... 1 2. Background ........................................................................................................................................... 4 3. Pakistan financial inclusion policy interventions .................................................................................. 9 3.1. Financial inclusion in Pakistan and SBP’s role ................................................................................ 9 3.2. The four policy interventions ....................................................................................................... 10 3.2.1. The regulatory framework for microfinance banks .............................................................. 10 3.2.2. The Microfinance Credit Guarantee Facility ......................................................................... 15 3.2.3. Branchless Banking Regulations ..........................................................................................
    [Show full text]
  • Items Description of Module Subject Name Human Resource
    Items Description of Module Subject Name Human Resource Management Paper Name Skill Development and Social Entrepreneurship Module Title Cases of successful social enterprises Module Id Module No. –39 Pre- Requisites Basic understanding of skills Objectives To develop conceptual understanding of skills and its uses Keywords Skills, Business Skills, Skill Development, Stages QUADRANT-I 1. Module: 39- Cases of Successful Social Enterprises 2. Learning Outcomes 3. Introduction to Social Entrepreneurs 4. Nine Social Entrepreneurial Case Studies 5. Summary 1. Module: 39- Cases of Successful Social Enterprises 2. Learning Outcomes: By the end of this module, students will be able to discover that common people from amongst proceeded on to become successful social entrepreneurs establish that others have done it too around the world and innovation and greatness has no boundary or ethnicity. 3. Introduction to Social Entrepreneurs Successful social enterprises are all around us and there are numerous people who have achieved in creating them and are living stories. These are truly inspirational real life examples of common people who have become change agents for the society. We just need to open up our minds and let the change come in. Toward exploring through a set of ten stories that are as real live examples from our amidst our daily life we find these engines of social transformation and they inspire us to question ourselves in judging whether we too could have done something like them or would we like to tread their path to become a social entrepreneur? 4. Nine Social Entrepreneurial Cases Studies Story One: Dr. Muhammad Yunus- The Microfinance revolution One of the foremost torch bearers of social entrepreneurship in recent times would be Muhammad Yunus.
    [Show full text]
  • Impact of Covid-19 and Inflation on Low Income Households
    Roundtable Policy Brief | 1 Kashf Foundation Roundtable Policy Brief January 2021 Impact of Covid-19 and Inflation on Low Income Households, Especially Women: Roundtable Policy Brief ----------------------------------------------------------------------------------------------------------------------------- ---------------------- Kashf Foundation hosted a roundtable on 20th January 2021 to bring to light the impact of COVID 19 on low income households, especially women. This document gives a brief summary of the discussions from the roundtable and posits policy recommendations based on the discussions. ----------------------------------------------------------------------------------------------------------------------------- --------------------- INTRODUCTION impact of Covid 19 and inflation on low income households, particularly microbusinesses, the response Kashf Foundation hosted a roundtable on 20th January by the microfinance sector and the areas of intervention 2021 to bring to light the impact of COVID 19 on low for microfinance providers to improve the social agency income households, especially women. The objectives of women. of the roundtable were: The following sections provide main points from each I. To understand the economic consequences of of the speaker’s sessions, followed by a section on key Covid 19 in Pakistan; policy recommendations. II. To highlight the underlying factors that have contributed to women facing the brunt of the DR ALI CHEEMA - COVID 19: ECONOMIC LOSS, recession, rightly termed as a ‘she-cession’; RECOVERY AND VULNERABILITIES IN III. To discuss the role of MFIs in building resilience PAKISTAN of women against economic shocks and policy actions which need to be adopted for a gender Dr. Ali Cheema used data from the PBS to demonstrate inclusive economic recovery. the economic shock brought about by the pandemic on income and employment. Dr. Cheema shared that a The panelists included the following esteemed decrease of 40% was reported in the mean income as a academics and practitioners; Dr.
    [Show full text]
  • The Research Proposal
    RUNNING HEADER: Pakistan Microfinance Sector Growth Rate THE CONSTRAINTS TO THE DEVELOPMENT OF MICROFINANCE SECTOR IN PAKISTAN By AYESHA MAJID 14U00520 A Thesis Submitted to the Faculty of the Lahore School of Economics in Partial Fulfilment of the Requirement for Bachelors of Science Degree in Double Majors Accounting and Finance Lahore School of Economics Burki Campus, Lahore 2018 PAKISTAN MICROFINANCE SECTOR GROWTH RATE ii DECLARATION This thesis contains no material which has been accepted for the award to the candidate of any degree or diploma, in any university or other institution. To the best of my knowledge the thesis contains no material previously published or written by another person, except where the references is made in the text of the thesis. ________________________ Ayesha Majid PAKISTAN MICROFINANCE SECTOR GROWTH RATE iii CERTIFICATION OF APPROVAL I certify that I have thesis “The constraints to the development of microfinance sector in Pakistan” by, Ayesha Majid d/o Col. Majid Hamid own effort and composition. In my opinion this work meets the criteria for approving a thesis submitted in partial fulfilment of the requirements of the Bachelors of Science Degree of Double Majors in Accounting and Finance at the Lahore School of Economics. ____________________________ Thesis Supervisor: Anum Ellahi Lahore School of Economics, 2018 PAKISTAN MICROFINANCE SECTOR GROWTH RATE iv THE CONSTRAINTS TO THE DEVELOPMENT OF MICROFINANCE SECTOR IN PAKISTAN ABSTRACT Despite the socio-economic importance that development economists are now attributing to Microfinance, it remains generally under developed in Pakistan. Microfinance is provision of financial services to people who do not receive service by traditional formal financial institutions vis-à-vis Banking and Non-Banking Financial Institutions.
    [Show full text]
  • Microwatch a Quarterly Update on Microfinance OUTREACH in Pakistan
    MicroWATCH A quarterly update on microfinance OUTREACH in Pakistan ISSUE 8: QUARTER 2 (Apr - jun 2008) rowth picked up slightly as the sector's Microcredit 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.
    [Show full text]
  • Series of ERUDITE Ph.D Dissertations
    Series of ERUDITE Ph.D Dissertations N° 01-2020 Title Financial Inclusion, Entrepreneurship and Gender An Empirical Assessment using Microeconomic Data Author Fozan FAREED UNIVERSITÉ PARIS-EST ÉCOLE DOCTORALE ORGANISATIONS, MARCHÉS, INSTITUTIONS LABORATOIRE ÉRUDITE 2019-2020 Thèse pour le doctorat en Sciences Économiques Présentée et soutenue publiquement par FOZAN FAREED 20th May, 2020 Financial Inclusion, Entrepreneurship and Gender An Empirical Assessment using Microeconomic Data Under the supervision of Professor Julie LOCHARD and Professor Catherine BROS Érudite, Université Paris-Est Members of the Jury Pr. William PARIENTÉ Professor at UC Louvain Referee Pr. Rohini SOMANATHAN Professor at Delhi School of Economics Referee Dr. Amina LAHRECHE Deputy Division Chief, IMF Examiner Pr. Patrick LENAIN Assistant Director, OECD Examiner Pr. Melika Ben SALEM Professor at University Gustave Eiffel President of the Jury L’UNIVERSITÉ PARIS-EST n’entend donner aucune approbation ni improbation aux opinions émises dans les thèses; ces opinions doivent être considérées comme propres à leurs auteurs. 2 Abstract Abstract Financial inclusion as part of the development process has gained considerable attention from policymakers worldwide. The numbers remain quite stark as 1.7 billion people worldwide, as of 2017, remain without access to basic financial services. This PhD thesis aims to empirically disentangle some of the many interrelationships between financial inclusion, entrepreneurship and gender. It consists of four chapters and relies on the use of nationally representative survey data at the individual level. The first chapter studies the effect of geographical access to microfinance on entrepreneurship and examines if having this access enables individuals to move up the economic ladder in Pakistan.
    [Show full text]