MICROCAPITAL BRIEF: Buksh Foundation, Kiva Announce Partnership to Support Microentrepreneurs in Pakistan

The Buksh Foundation (BF), a nonprofit microfinance institution (MFI) in Pakistan, and Kiva Microfunds, a US-based nonprofit online fundraising portal for MFIs, have announced a partnership to support microentrepreneurs in an effort to achieve development sector goals and alleviate poverty in the country. The CEO of Buksh Foundation, Fiza Farhan, reportedly said that “Kiva has evolved microfinance lending globally and Buksh Foundation will replicate the model in Pakistan by creating a loan programme, facilitating access to small loans for the underprivileged.” [1]

The Buksh Foundation reported total assets of USD 187,000, a gross loan portfolio of USD 107,000, return on assets (ROA) of -111 percent, return on equity (ROE) of 1,367 percent and 615 active borrowers as of June 2012. Kiva has raised funds for loans totaling USD 383 million that have been disbursed by 173 MFIs and similar organizations in 64 countries.

By Juan Blanco, Research Associate

About Buksh Foundation

The Buksh Foundation is a not-for-profit microfinance institution based in Pakistan with “the vision of scaling up financial services in Pakistan by providing loans to poor people.” According to the US-based nonprofit Microfinance Information Exchange (MIX), Buksh Foundation reported total assets of USD 187,000, a gross loan portfolio of USD 107,000, return on assets (ROA) of -111 percent, return on equity (ROE) of 1,367 percent and 615 active borrowers as of June 2012.

About Kiva

Kiva Microfunds is a US-based, nonprofit online portal that was established in 2005. It allows individuals to make loans to microfinance institutions (MFIs) to backfill loans that the MFI has made to low-income borrowers. As of 2012, Kiva has raised funds for loans totaling USD 383 million that have been disbursed by 173 MFIs and similar organizations in 64 countries. In 2012, Kiva launched a pilot platform, Kiva Zip, enabling users to lend directly to microentrepreneurs in Kenya and the United States.

Sources and Additional Resources

[1] The News: “Buksh Foundation, KIVA join hands,” March 22, 2014, http://www.thenews.com.pk/Todays-News-3-239553-Buksh-Foundation,-KIVA-join-hands

MicroCapital Story, March 3, 2014, “Crowdfunders Kiva, Vittana Partner to Extend Student Loans for Higher Education in Developing World,”  https://www.microcapital.org/microcapital-brief-crowdfunders-kiva-vittana-partner-to-extend-student-loans-for-higher-education-in-developing-world/

MicroCapital Story, January 4, 2014, “Google.org Donates $3m to Launch Kiva Labs to Crowdsource Funds for Education, Clean Energy, Agriculture,” https://www.microcapital.org/microcapital-brief-google-org-donates-3m-to-launch-kiva-labs-to-crowdsource-funds-for-education-clean-energy-agriculture/

MicroCapital Story, October 15, 2013, “Pakistani Government Asks Commercial Banks to Lend $940m More to Small Businesses Owned by Younger People,” https://www.microcapital.org/microcapital-brief-pakistani-government-asks-commercial-banks-to-lend-940m-more-to-small-businesses-owned-by-younger-people/

MicroCapital Universe Profile: Buksh Foundation, https://www.microcapital.org/microfinanceuniverse/tiki-editpage.php?page=Buksh+Foundation++%28BF%29

MicroCapital Universe Profile: Kiva Microfinance, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Kiva

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