Press Room
		Citi Network Strengthening Program in Full Swing in Pakistan

Citi Foundation (Citi) and Pakistan Microfinance Network (PMN) Launch Report on “Microfinance Industry Assessment: A Report on Pakistan”

Pakistan's microfinance sector has shown impressive growth over the past two years. Supported by a favorable policy environment, practitioners have focused on expanding outreach and have begun experimentation with new services such as savings and insurance. However, several challenges still hinder the path of progress for the local sector, such as alternative funding sources, insufficient deposit mobilization, necessity of strong retail institutions and human resources, product and segment diversification, technology and scale.

In 2000, the Government initiated concerted efforts for promotion of the microfinance sector. This led to a changing landscape and rapid growth, necessitating the availability of sector-specific information and documentation. Although a number of reports and publications are available on the microfinance sector in Pakistan, there is no one comprehensive document that provides an overview of the sector with a historical and forward-looking approach.

Given this, Citi Foundation (Citi) and Pakistan Microfinance Network (PMN) have published a report titled “Microfinance Industry Assessment: A Report on Pakistan”, published under the banner of the Citi Network Strengthening Program. The program is a three-year global initiative that is focused on increasing the scale and reach of the microfinance industry.

“This Industry Assessment is designed to provide an overview of the local sector,” PMN CEO Syed Mohsin Ahmed said, “in terms of its performance, emerging trends and future developments at the retail and meso levels, while identifying gaps in the market in the medium term”.

"This Industry Assessment is one of the many milestones the program has achieved in its undertaking to strengthen microfinance networks and their members through capacity building, advocacy and information generation,” Citi Country Officer & Managing Director Arif Usmani said. “We are positive that this report will be a useful resource in supporting strategic planning for networks, network members and external audiences such as donors, investors, policymakers”

In addition to support from the UK Department for International Development (DFID) and the Swiss Agency for Development & Cooperation (SDC), the NSP, which was renewed in 2008 with additional Citi Foundation grant support of US$211,000 or PKR 16.8 million, has helped PMN produce several research papers and almost half a dozen micro notes in 2008. These include, among others, “Rural Finance Policy in Pakistan”, “Impact of Inflation on Microfinance Providers”, “Impact of Inflation on Microfinance Clients”, “Country Level Saving Assessment” and “Mapping Portfolio Quality in Pakistan’s Microfinance Sector”. The NSP has also conducted training for attracting commercial finance and improving governance standards at Microfinance Institutions (MFI). The NSP’s biggest achievements in 2008 include establishing a pilot Credit Information Bureau for the sector, and its ongoing work in implementing Consumer Protection Codes.

Citi has been present in Pakistan for 47 years and has taken an active role in the promotion of initiatives aimed at expanding the microfinance sector. Besides organizing the Citi Microentrepreneurship Awards Program in 2004 and arranging a training of trainers program titled ‘financial education for the poor’ in liaison with international NGOs ‘Microfinance Opportunities’ and ‘Freedom from Hunger’, it has awarded sizeable grants to Kashf Foundation, Tameer Foundation Trust, Thardeep Rural Development Program, Akhuwat and Acumen Fund. Citibank N.A Pakistan has also arranged the first commercial funding transaction for Kashf Foundation, paving the way for MFIs to access commercial funds in future.