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 boosted the maximum microloan size to PKR 3 million (USD 14,000).

The aggregate gross loan portfolio of microfinance providers in the country grew to PKR 449 billion (USD 2.0 billion) as of June 2022, up 7.5 percent during the quarter and 26 percent for the 12-month period. The number of borrowers grew 3.5 percent quarter-to-quarter to 8.4 million.

Microloan disbursements during the quarter ending June 2022 grew to PKR 153 billion (USD 700 million), up 14 percent from the previous quarter and up 38 percent from the same quarter a year earlier. The number of loans disbursed grew 3.0 percent during the quarter to 5.4 million, with the average loan size increasing 10 percent to PKR 28,000 (USD 130). The portion of loans overdue by at least 30 days likewise grew from 4.3 percent to 4.5 percent.

PMN’s membership includes 31 non-bank microfinance institutions, 11 microfinance banks and five rural support programs.

Sources and Additional Resources

Dawn article
https://www.dawn.com/news/1714220

PMN homepage
https://pmn.org.pk

More content from MicroCapital on Pakistan
https://www.microcapital.org/?s=pakistan

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