PPAF, PMN join hands to develop microfinance sector

KARACHI – Pakistan Poverty Alleviation Fund (PPAF) and Pakistan Microfinance Network (PMN) have joined hands to launch an online platform that will allow microcredit lenders and other stakeholders to assess competitive situation in their specific markets.
A statement issued by PPAF on Sunday stated that in an agreement to this effect was signed between by PPAF CEO/MD Qazi Azmat Isa and PMN CEO Mohsin Ahmad. International Fund for Agricultural Development (IFAD) Mission Leader David Rendall, Steve Rasmussen from the World Bank, PPAF Senior Adviser Ahmad Jamal, Chief Financial Officer Iltifat Rasul Khan and others were also present on the occasion.
“The mapping tool will enable stakeholders to identify geographical locations of all branches of microfinance providers in Pakistan. This online platform will also allow microfinance providers to input their data such as branch location and population density, thus enabling stakeholders to identify market structures,” said the statement.
The PPAF and the PMN have already collaborated in the establishment of the Credit Information Bureau. The current initiative would involve policy dialogue and holding of workshops and conferences.
Access to multiple loans precedes and multiple borrowing of microfinance clients is seen as potential cause for over-indebtedness. Understanding competitive environment, therefore, is a precondition for understanding opportunity space that borrowers have and probable danger of over-indebtedness in a specific microfinance market. Likewise, insights of the prevailing market conditions are also imperative for strategic planning by microfinance institutions, donors, legislators and policymakers.
Provision of updated information to sector stakeholders, providing platforms for strategic and policy dialogues for the local microfinance sector with an international context are important for the microfinance sector.
The PPAF will provide support to PMN for publishing micro-notes, micro-watch, holding roundtables, conferences and workshops for knowledge management and linkages of microfinance with commercial and capital markets, international trainings and exposures.