Paper

Poverty and Social Impact Assessment: Pakistan Microfinance Policy - Final Report

Assessment of Pakistan’'s microfinance sector
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This poverty and social impact assessment report on Pakistani microfinance asserts that although the microfinance sector in Pakistan is relatively young, it is comparable to others in the region in terms of key measurements such as number of beneficiaries and average size of loans.

The report suggests that Pakistan's microfinance sector is in a position to consolidate gains made in recent years, and is ready to embark on major expansion in size and scope, given the right conditions such as macroeconomic stability and continued development of the banking sector. The report states that:

  • Government of Pakistan has played a catalytic role in starting up the microfinance sector, but now needs to step back and let it evolve on its own momentum;
  • Role of subsidies needs to be changed. Future subsidies should be used to build efficiency and financial sustainability of MFIs;
  • Policies need to provide an enabling environment for microfinance growth.

The paper seeks special attention to the regulation of microfinance providers based on services, tax structures, poverty monitoring and evaluation, restrictions on loan size, interest rates and services to Rotating Savings and Credit Associations (ROSCAs).

About this Publication

By Oxford Policy Management
Published