The State Bank of Pakistan (SBP) recently furnished five commercial banks with in-principle approval to set up digital banking platforms. Three of the five – HugoBank, KT Bank Pakistan and Raqami Islamic Digital Bank – have been established this year while the others – Mashreq Bank Pakistan and Telenor Microfinance Bank – have longer track records. These banks can now offer digital financial services on a limited basis, before final rollouts are approved by SBP.
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MICROCAPITAL BRIEF: Kashf Foundation of Pakistan Borrows in Local Currency from SEB Microfinance Funds, Arranged by Symbiotics
Kashf Foundation, a provider of microloans and microinsurance to women in Pakistan, recently secured a local-currency loan of undisclosed size from SEB Microfinance Funds, an offering of
MICROCAPITAL BRIEF: Accion, Sturgeon Lead $6.4m Equity Round for Trukkr, Fintech Serving Trucking SMEs in Pakistan
Trukkr, a Pakistan-based financial technology (fintech) firm, recently obtained USD 6.4 million in a funding round led by two impact investors, US-based Accion Venture Lab and UK-based Sturgeon Capital, with placements also made by Al Zayani Venture Capital, Haitou Global and Peter Findley. The breakdown
MICROCAPITAL BRIEF: China Mobile’s Zong Unveils PayMax Payment Service in Pakistan
China Mobile, a China-based telecommunications company, recently launched a digital payments product called PayMax via its subsidiary China Mobile Pakistan (CMPAK), which trades under the brand name Zong. Zong is targeting
MICROCAPITAL BRIEF: In Pakistan, Microfinance Portfolios Rise 7.5% Quarterly to $2b
According to data attributed to the Pakistan Microfinance Network, microfinance providers in the country grew the number of savers they serve by 2.9 percent to 87 million from March 2022 to June 2022. During that period, however, the aggregate amount saved by those customers fell 8.9 percent to PKR 391 billion (USD 1.8 billion).
Meanwhile, microlending in Pakistan is growing unambiguously, and it is expected to continue its upward trend as new regulations recently
SPECIAL REPORT: Bancamía of Colombia, Banco FIE of Bolivia, Kashf Foundation of Pakistan Shortlisted for $100k European Microfinance Award on Financial Inclusion for Women
From the European Microfinance Platform (e-MFP): On the 21st and 22nd September 2022, the Selection Committee for the European Microfinance Award 2022 (EMA 2022) on “Financial Inclusion that Works for Women” chose the three finalists that will go on to compete for the EUR 100,000 (USD 100,000) prize: Bancamía from Colombia; Banco FIE from Bolivia; and Kashf Foundation from Pakistan.
For decades, financial inclusion has ostensibly been about women’s empowerment and autonomy. But too often the sector has paid only lip-service to what this means, focusing merely on
MICROCAPITAL BRIEF: Mobilink Microfinance Bank, CBA to Broaden Range of Digital Financial Services for MSMEs in Pakistan
Two Pakistani companies, Mobilink Microfinance and CBA Digital Distribution Platform, recently partnered to increase access to digital financial services by allowing Mobilink to offer its customers CBA services. CBA enables
MICROCAPITAL BRIEF: Citibank Pakistan, National Institutional Facilitation Technologies Partner on Digital Financial Services for Retailers in Pakistan
National Institutional Facilitation Technologies (NIFT), a Pakistani payment system operator, and the local arm of US-based financial services provider Citigroup, recently announced a “referral arrangement” under which Citibank Pakistan will refer its clients to NIFT’s infrastructure for processing digital payment services. The deal will allow corporations to
MICROCAPITAL BRIEF: FINCA Microfinance Bank, Millat Tractors Partner to Serve Farmers in Pakistan
Pakistan-based FINCA Microfinance Bank, a for-profit entity whose name derives from the US-based Foundation for International Community Assistance (FINCA International), recently announced a partnership with Pakistan-based Millat Tractors to increase the availability of machinery to farmers in the country. Under the new arrangement, customers of FINCA Pakistan are able to
MICROCAPITAL BRIEF: SAFCO Transforming into For-profit Entity with Microfinance License from Securities and Exchange Commision of Pakistan
The Securities and Exchange Commission of Pakistan (SECP) recently issued a license to Sustainable Actions to Access Financial Capital Opportunities (SAFCO) Microfinance Company, a unit of the SAFCO Support Foundation, allowing it to offer microfinance services. The announcement comes as SECP is
MICROCAPITAL BRIEF: Khushali Microfinance Bank, Sindh Graduates Association Partner on Financial, Vocational Education for Women in Rural Pakistan
Pakistan’s Khushali Microfinance Bank recently initiated a collaboration with Sindh Graduates Association (SGA), an organization mobilizing university graduates in the Pakistani province of Sindh, on a program intended to increase women’s living standards. In particular, the programme targets the female population in the Sindh village of Mirpurkhas with training in tailoring and financial topics such as how to use
MICROCAPITAL BRIEF: Mobilink Microfinance Offering Loans to “Home-based Restaurants” Using Foodpanda to Take Online Orders, Offer Delivery in Pakistan
Mobilink Microfinance Bank, a Pakistani digital financial services provider, recently initiated a collaboration with foodpanda home chefs, a division of Singapore-based “online food and grocery delivery platform” foodpanda. The objective is to extend weekly microloans of up to PKR 50,000 (USD 247) to home-based restaurant owners in order to “help resolve supply chain, marketing, and food quality issues” thus “empowering
MICROCAPITAL BRIEF: JSIL Initiates JS Microfinance Sector Fund to Lend to MFIs in Pakistan
Pakistan-based JS Investments Limited (JSIL) recently launched the JS Microfinance Sector Fund (JSMFSF) with the goal of providing “the opportunity to tap into the growth potential of Pakistan’s microfinance sector” resulting in “a reasonable rate of return while maintaining high liquidity.” The fund carries a minimum investment of
MICROCAPITAL BRIEF: Kamyab Pakistan Offers Government Guarantees, Subsidies for Wholesale Funding of Microenterprise, Housing, Farming Loans
The government of Pakistan recently launched the Kamyab Pakistan Program, through which commercial banks and development finance institutions can bid to provide wholesale loans to retail providers of housing and microfinance loans. Successful bidders will be eligible to apply for government funds to: (1) increase the ability of retail lenders to borrow from the wholesale lenders; and (2) cover the first 10 percent of losses retail lenders may incur within the program plus half of the losses wholesale lenders may incur. Through Kamyab Pakistan, retail lenders
MICROCAPITAL BRIEF: UBL of Pakistan to Offer Shariah-compliant Housing Loans to Akhuwat Customers
Pakistan-based organizations United Bank Limited (UBL) and Akhuwat recently signed an agreement under Mera Pakistan Mera Ghar, a government-backed housing program, whereby Akhuwat will recommend certain of its low-income customers to UBL for
MICROCAPITAL BRIEF: BankIslami, TPL Life Offering Shariah-compliant Hospitalization, Funeral Coverage for COVID-19 in Pakistan
BankIslami, an institution offering Shariah-compliant financial services in Pakistan, recently partnered with TPL Life, a digital insurance technology firm controlled by Pakistan’s Habib Bank Limited (HBL), to offer coverage for people in case they become ill with COVID-19. The package pays up to: (1) PKR 30,000 (USD 195) upon diagnosis; (2) additional funding of an unspecified amount should the patient be hospitalized; and (3) funeral expenses up to
MICROCAPITAL BRIEF: CDC, FinnFund Lend $25m to Kashf Foundation for Microfinance for Women in Pakistan
The CDC Group, a development finance institution owned by the UK government, recently disbursed USD 25 million to Kashf Foundation, a Pakistani microfinance institution, in the form of a senior, unsecured term loan. The loan is 40-percent funded by FinnFund, a development finance institution controlled by the government of Finland.
Kashf Managing Director Roshaneh Zafar stated, “We are
MICROCAPITAL BRIEF: Pakistan Launches Digital Payment System Raast to Promote Financial Inclusion, Strengthen Rule of Law, Boost Government Services
The country of Pakistan recently began the rollout of Raast, an “instant digital payment system,” through which the government will route payments to individuals, such as salaries, pensions and welfare. Individuals and businesses