KARACHI: An Indonesian Central Bank (ICB) delegation after a visit to a branch of Khushhali Bank on January 26, has expressed its faith in the viability of rural microfinancing in Pakistan.
According to an issued statement, a delegation of Indonesian Central Bank and State Bank of Pakistan visited Tando Allah Yar Branch of Khushhali Bank, Pakistan’s premier microfinance bank, in Sindh on January 26. The delegation comprised senior level members from the both the banks.
To assess the viability of microfinance lending in Pakistan, the State Bank of Pakistan organised a study tour for the Indonesian delegation to visit a branch and observe the socioeconomic problems faced by low income households in Pakistan and in the successful running of microfinance facilities.
During the visit, the Indonesian delegation was briefed on various microfinance facilities offered by Khushhalibank and the benefits of microfinance to small farmers of rural areas. During the field visit, the group also met with the clients of Khushhalibank and inquired about their farming activities, cropping patterns, loan needs, and group lending practices.
Khushhalibank’s regional team also briefed the delegation on the latest trends and future plans in the field of microfinance, the role of microfinance in the rural financial system and local economy development and innovations in microfinance.
The participants also became acquainted with functions of microfinance organisations in Pakistan, and the various programmes intended to support small businesses in Pakistan.
Pakistan has become one of the more successful cases in developing its microfinance sector conducting deep analysis pertaining to the regulating framework for microfinance organisations. Currently, there are over two million active borrowers in the country.
A recent publication of the Economist Intelligence Unit ‘Global Microscope on the microfinance business environment 2010’ ranks Pakistan amongst the top five countries globally and number one in terms of regulatory environment.
