MICROCAPITAL BRIEF: State Bank of Pakistan Releases Five-Year “Microfinance Strategic Framework,” Launches Financial Literacy Programme

The State Bank of Pakistan (SBP), Pakistan’s central bank, recently announced that it has developed a detailed strategy to promote the sustainable growth of microfinance as outlined in its “Microfinance Strategic Framework 2011-2015” that is intended to “foster a pro-poor and sustainable development of the country” [1]. The new strategy will specifically focus on: (a) promoting innovations to reduce operating costs and achieve “rapid scale” (b) encouraging inclusive financial services; (c) promoting organizational development through effective governance and professional management; and (d) improving sector “discipline” through consumer protection policies and financial literacy programs. As part of the strategy, SBP will issue regulatory guidelines to microfinance banks (MFBs) for “up-scaling of loans and develop a reporting structure to assess the geographic distribution of microfinance growth.”

SBP Governor Yaseen Anwar also announced that SBP has started a pilot Financial Literacy Programme (FLP) with Austrian consultancy Bearing Point serving as implementing partner. The programme aims to promote financial literacy through various media outlets and mobile network operators and will focus on basic financial concepts such as budgeting, saving, investments, debt management, financial products and branchless banking. The pilot phase of the programme will target approximately 50,000 beneficiaries with an emphasis on low-income people.

To view the full text of the Microfinance Strategic Framework 2011-2015, you may visit: http://www.sbp.org.pk/MFD/Strategic-Framework-SM-24-Jan-2011.pdf.
To view details of the Financial Literacy Programme, you may visit: http://www.sbp.org.pk/press/2011/FLP-23-Apr-11.pdf.

By Nisha Koul, Research Associate

About State Bank of Pakistan: Established in 1956, the State Bank of Pakistan (SBP) is the nation’s central banking authority. SBP is responsible for the following primary functions: to regulate and supervise the nation’s financial system, to carry out monetary policy and to manage public debt. In addition, SBP performs the following non-traditional functions: developing the financial framework of the country, providing credit to priority sectors and furthering the Islamization of the banking system.

Sources and Additional Resources:

[1] Business Recorder, “SBP to promote microfinance banking: Yaseen Anwar,” http://www.brecorder.com/top-news/1-front-top-news/37399-sbp-to-promote-microfinance-banking-yaseen-anwar-.html

MicroCapital.org story, October 3, 2011, “MICROCAPITAL BRIEF: State Bank of Pakistan (SBP) Reduces Provision Requirements for Microfinance Loans,” https://www.microcapital.org/microcapital-brief-state-bank-of-pakistan-sbp-reduces-provision-requirements-for-microfinance-loans/

MicroCapital.org story, August 22, 2011, “MICROCAPITAL BRIEF: State Bank of Pakistan (SBP) Reports 13% Quarterly Decline in Microfinance Bank Deposits, Slow Recovery After 2010 Floods,” https://www.microcapital.org/microcapital-brief-state-bank-of-pakistan-sbp-reports-13-quarterly-decline-in-microfinance-bank-deposits-slow-recovery-after-2010-floods/

MicroCapital.org story, March 21, 2011, “MICROCAPITAL BRIEF: State Bank of Pakistan (SBP) Announces Launch of $16m Financial Innovation Fund, Support for Mainstreaming Microfinance into Formal Banking System,” https://www.microcapital.org/microcapital-brief-state-bank-of-pakistan-sbp-announces-launch-of-16m-financial-innovation-fund-support-for-mainstreaming-microfinance-into-formal-banking-system/

MicroCapital Universe Profile: State Bank of Pakistan (SBP), https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=State+Bank+of+Pakistan+%28SBP%29

Browse the MicroCapital Universe and add your entry to the wiki at https://www.microcapital.org/microfinanceuniverse/

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