Source: Daily Times (Pakistan).
Original article available here.
KARACHI, May 31 – High economic growth and financial sector development in recent years has been unable to penetrate formal financial services across Pakistan.
This is especially true in the case of deposit services as compared to the 1990’s, not only has the number of banking deposits declined but so has the number of small deposits. Only 26 million accounts exist in a country of 160 million people.
Pakistanis, while continuing to save, remain outside the formal banking sector. This is attributed largely to urban concentrations of banking services, inappropriate savings products, lack of human resources and even financial illiteracy. Even the microfinance sector, though making progress in terms of providing access to credit to the marginalised, has done little in the area of savings.
These observations, among others, were highlighted at an expert roundtable jointly organised by Citibank N.A. Pakistan (Citi) and the Pakistan Microfinance Network (PMN) to launch ‘Expanding access to Saving Services’- a research report assessing Pakistan’s saving patterns conducted by PMN in collaboration with Shorebank International (SBI), and with support from Citi Foundation USA, the philanthropic arm of Citibank N.A., UK Department for International Development (DFID) and Financial Sector Strengthening Program (FSSP) a project of Swiss Agency for Development & Cooperation.
The roundtable was held at the State Bank of Pakistan and featured meaningful discussions on the supply side of savings mobilisation, between Commercial Banks, MFI’s, State Bank, PMN and Microfinance practitioners.
The panel of experts was led by Mr Jameel Ahmed, Executive Director Banking Policy & Regulation Group, State Bank of Pakistan followed by an overview of ‘savings’ by Syed Mohsin Ahmed of the PMN and presentations on ‘Mobilising Savings from Urban Poor’ by ShoreBank International’s Consultant Hussan Bano Burki, ‘Supply of Savings Services- Findings’ by Research Analyst PMN Aban Haq, ‘MicroSavings First Microfinance Bank’s experience’ by COO Inshaan A. Nawaz and finally ‘a regulatory overview’ by CFO Tameer Microfinance Bank Shahid Mustafa.
Speaking on the occasion, GM PMN, Syed Mohsin, Ali said that this roundtable aims at sharing the findings of our report and more importantly to get an insight into the practitioners’ perspective on savings in Pakistan.
Amena Arif, Commercial Bank Head at Citi said that we hope that bringing together a variety of players such as microfinance banks, specialised microfinance institutions, commercial banks, regulators and donors, will result in a useful and action-oriented discussion on how to take the savings initiative forward.
Arif Usmani, Country Officer & Managing Director Citi Pakistan, said that the goal of the Citi-PMN Network Strengthening Programme is to enhance the capacity of microfinance networks and their members.
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