The microfinance industry in Pakistan is anticipating PKR 3 billion (USD 35 million) of financial losses due to recent floods and subsequent damages. These floods have significantly damaged livestock and infrastructure, while leaving an estimated 6 million people homeless, which will impact the ability of microborrowers to repay their loans.
Pakistani microfinance institutions reporting to the Microfinance Information Exchange held an aggregate gross loan portfolio of USD 114 million and total assets of USD 233 million as of 2009. The Pakistan Microfinance Network, a Pakistani network of microfinance providers, is working with donors and the State Bank of Pakistan, Pakistan’s central banking authority, to refinance client loans and establish credit lines with other microfinance institutions.
By Jennifer Shevock, Research Associate
Sources and Additional Resources:
“Microfinance banks in Pakistan fear losses” September 13, 2010. http://www.newzglobe.com/article/20100913/microfinance-banks-pakistan-fear-losses
“Pakistan’s Microfinance Sector: Rebuilding the flood hit nation” September 7, 2010.
http://www.microfinancefocus.com/news/2010/09/07/pakistan%E2%80%99s-microfinance-sector-rebuilding-the-flood-hit-nation/
MICROCAPITAL BRIEF: “State Bank of Pakistan Devising New Microfinance Strategy, Focusing on Inclusiveness, Growth, Partnerships and Infrastructure” August 23, 2010.
https://www.microcapital.org/microcapital-brief-state-bank-of-pakistan-devising-new-microfinance-strategy-focusing-on-inclusiveness-growth-partnerships-and-infrastructure/
Microfinance Information Exchange: Pakistan: http://www.mixmarket.org/mfi/country/Pakistan
MicroCapital Universe: Pakistan Microfinance Network: https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Pakistan+Microfinance+Network+%28PMN%29
MicroCapital Universe: State Bank of Pakistan: 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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