MICROCAPITAL BRIEF: Pakistan Microfinance Network (PMN) Discussion Indicates Need for Greater Focus on Rural Areas

The Pakistan Microfinance Network (PMN), an organization established in 1995 and comprised of 12 microfinance institutions (MFIs) throughout Pakistan, recently held an organized discussion regarding Pakistan’s rural finance market. Attendees included Special Secretary of Finance in Pakistan Asif Bajwa, who headed the event; Chief Executive Officer of PMN, Syed Mohsin Ahmed; and Qazi Shoaib Ahmad, who represented the State Bank of Pakistan (SBP). The main conclusion of the meeting was that there has been growth recently in Pakistan’s microfinance sector, but that lack of “formal analysis” has led to “over-targeting of certain segments of the population while rural outreach is comparatively limited” [1]. According to Mr Ahmed, 33 percent of all bank branches in Pakistan are in the rural areas, where 67 percent of the population lives [1]. 27 microfinance institutions (MFIs) in Pakistan report to the MIX Market and they together hold assets equivalent to USD 346 million and serve 1.4 million borrowers.

By Julia Korn, Research Associate

About The Pakistan Microfinance Network (PMN):

The Pakistan Microfinance Network (PMN) is a network of 12 microfinance providers, which reportedly cover 90 percent of the microfinance outreach in Pakistan. PMN acts as a disseminator of microfinance information with the aim of improving the outreach and sustainability of microfinance in Pakistan.

Sources and Additional Resources:

[1] Pakistan Daily Times. “PMN Holds Rural Microfinance Roundtable Moot” on June 26, 2010. http://www.dailytimes.com.pk/default.asp?page=20106\26\story_26-6-2010_pg5_12

MicroCapital Universe. The Pakistan Microfinance Network (PMN). https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Pak…

MicroCapital. “MICROCAPITAL BRIEF: Pakistan Microfinance Network (PMN) to Set Up Credit Bureau by End of April 2010” by Christopher Maggio on March 16, 2010. https://www.microcapital.org/microcapital-brief-pakistan-microfinance-net…

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