IS 2 m s q A ye p M co A th K te 6 C b th co 6 T co 4 m G w G In 1 d m in S va sa m a st co co th in – co In P la in co ty h SSUE 14: ANNUAL MicroW Micro 009 saw a g microfinance sec harp downturn uarter of 2008. Active borrowers ear, and GLP in eer groups, gro MFBs; Tameer ontributing the Amongst the MFI he most active b Kashf remained erms of both act 0% of the marke Compared with 2 ranches were ad he most branch overage and pen % respectively) c The trend of ex ontinued, with sh 5% in 2009. Th most to growth) c Gender distributio with 53% of borro GLP). n sum, a total of .8 million micro isbursement and million microloans ncrease coming e Savings grew sub alue of savings. avings by 60%. mobilization. RSP lthough they se teadily gaining in ontinued to hold ompared with 75 heir prudential nstitutional depos this is substan ompared with oth nsurance saw a Policy holders gr arge growth num nsurance to polic ontribute 68% o ype of insurance olders held hea (JAN-DEC 2009) WATCH is a publication of and the C oWAT radual recovery ctor in Pakistan witnessed in increased by 5 ncreased by 16% owth came larg r, KB and most to this s, BRAC and OP borrowers. NRSP the market le tive borrowers a et. 2008, the geog dded in total, w hes (67 and 58 netration in Punja compared with B pansion in urba hare of urban bo his is because M chose to focus m on among borrow owers being fema f PKR 28.5 billio oloans. These f d loan numbers s). Average loan entirely from grou bstantially in 20 Number of sav This reflects th Ps continued to eemed to be los n both savers as the most value 5% from the prev status and su sits plus smaller ntiated by their her peer groups. large increase, rew by 48% and bers are due to a cyholders’ childr of policy holders. e held towards he alth insurance th f the Pakistan Microfinan iti Foundation. This is als TCH y of the after the the last 5% in the %. Among gely from FMFBL increase. PP added P, KB and eaders in s well as GLP, raphic footprint ith Sindh adding respectively). A ab and Sindh rem Balochistan (1%) an lending com rrowers increasin MFBs (the peer more on urban a wers remained c ale (although the on were disburse figures, howeve of 2008 (PKR 3 n size increased up lending. 09 in terms of b vers grew by alm e sector’s contin o account for th sing share to M s well as value o of savings amon vious year. This ubsequent ability deposits from th much higher av specifically in th d sum insured b a change in NRS ren as well. Hen . The year also ealth as opposed his year, compa ce Network (PMN). It was so the result of the effort A QUART together holding increased sligh g, and NWFP re As the previous mained higher (8 and NWFP (2%) mpared to rural ng from 42% in 2 group contribut nd peri-urban m consistent in the ey accounted for ed through exten r, are lower th 30.9 billion throu d about 8% -- w both savers as w most 35% and va nued focus on d he most savers FBs, who seem of savings. MFB ngst peer groups is not surprising y to generate he microfinance verage saving b he last quarter o y 27%, although SP’s policy of ext nce, rural marke saw a shift in te d to life – 50% o red with 38% in 2008 2009 Increase (Net) Increase (%) s made possible by the g ts of organizations that co TERLY UPDAT Ac Ac Po g about htly: 34 educing s year, 8% and ). growth 2008 to ing the markets. e year – 45% of nsion of an the ugh 2.1 with the well as alue of deposit (77%) m to be Bs also s – 84% , given larger market balance of 2009. h these tending ets now erms of of policy n 2008. 5 1,0 1,5 2,0 2,5 Active Borrowers (000's) 5 1,0 1,5 2,0 2,5 3,0 3,5 Policy Holders (000's) Active Borrow ers M 1,732,879 1,826,045 93,166 5 Microcr e 50 1,00 1,50 2,00 2,50 Active Savers (000's) enerous support from the ontributed their data (for TE ON MICR ctive Borrowers b ctive Savers by Pe olicy Holders by P 3 2 3 5 0 500 000 500 000 500 2 2 3 3 3 0 500 000 500 000 500 000 500 20 Value (PKR M illions) Ac Sav 18,752 1,74 21,723 2,35 2,970 60 16 e dit M 14 2 80 4 0 00 00 00 00 00 20 e Department for Internat citations, see back cove ROFINANCE O by Peer Group eer Group Peer Group 35% 27% 33% 5% 008 Year 26% 33% 38% 3% 008 Quarter ctive vers Value (PKR Millions 43,609 5 51,273 8 07,664 3 35 Micro-Savings 4% 2% 0% 4% 008 Year tional Development (UK) er). OUTREACH 39% 26% 29% 6% 2009 18% 21% 58% 3% 2009 e R s) Policy Holders ,384 2,241,552 ,554 3,306,639 ,171 1,065,087 59 48 Micro- 19% 1% 77% 3% 2009 IN PAKISTA Others RSP MFI MFB Others RSP MFI MFB Sum Insured (PKR Millions) 2 34,340 9 43,539 7 9,199 8 27 Insurance Others RSP MFI MFB AN
16
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MicroWatch - Pakistan Microfinance Connect - Issue 14.pdf5 TMFB 122,538 5.2 A. Top 5 MFPs: Increase in Active Savers (Net) B. Top 5 MFPs: Increase in Value Savings (Net) SUMMARY OF
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IS
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Svasamastcocothin– co
InPlaincotyh
SSUE 14: ANNUAL
MicroW
Micro
009 saw a gmicrofinance secharp downturn uarter of 2008.
Active borrowers ear, and GLP ineer groups, gro
MFBs; Tameerontributing the
Amongst the MFIhe most active b
Kashf remained erms of both act0% of the marke
Compared with 2ranches were ad
he most branchoverage and pen% respectively) c
The trend of exontinued, with sh5% in 2009. Th
most to growth) cGender distributiowith 53% of borroGLP).
n sum, a total of.8 million microisbursement and
million microloansncrease coming e
Savings grew subalue of savings.avings by 60%.
mobilization. RSPlthough they seteadily gaining inontinued to hold ompared with 75heir prudential nstitutional depos
this is substanompared with oth
nsurance saw a Policy holders grarge growth numnsurance to policontribute 68% oype of insuranceolders held hea
(JAN-DEC 2009)
WATCH is a publication ofand the C
oWAT
radual recoveryctor in Pakistan
witnessed in
increased by 5ncreased by 16%owth came largr, KB and
most to this s, BRAC and OP
borrowers. NRSPthe market le
tive borrowers aet.
2008, the geogdded in total, w
hes (67 and 58netration in Punjacompared with B
pansion in urbahare of urban bohis is because Mchose to focus mon among borrowowers being fema
f PKR 28.5 billiooloans. These fd loan numbers s). Average loanentirely from grou
bstantially in 20 Number of savThis reflects th
Ps continued toeemed to be losn both savers asthe most value
5% from the prevstatus and su
sits plus smaller ntiated by their her peer groups.
large increase, rew by 48% andbers are due to acyholders’ childr
of policy holders.e held towards health insurance th
f the Pakistan Microfinaniti Foundation. This is als
TCH
y of the after the the last
5% in the %. Among gely from
FMFBL increase.
PP added P, KB and eaders in s well as GLP,
raphic footprint ith Sindh adding respectively). Aab and Sindh rem
Balochistan (1%)
an lending comrrowers increasin
MFBs (the peer more on urban awers remained cale (although the
on were disbursefigures, howeveof 2008 (PKR 3
n size increasedup lending.
09 in terms of bvers grew by alme sector’s contin
o account for thsing share to Ms well as value oof savings amonvious year. This
ubsequent abilitydeposits from thmuch higher av
specifically in thd sum insured ba change in NRSren as well. Hen. The year also ealth as opposed
his year, compa
ce Network (PMN). It wasso the result of the effort
A QUART
together holding
increased slighg, and NWFP reAs the previousmained higher (8and NWFP (2%)
mpared to rural ng from 42% in 2group contributnd peri-urban mconsistent in the
ey accounted for
ed through extenr, are lower th
30.9 billion throud about 8% -- w
both savers as wmost 35% and vanued focus on d
he most savers FBs, who seemof savings. MFBngst peer groupsis not surprisingy to generate he microfinance verage saving b
he last quarter oy 27%, although
SP’s policy of extnce, rural markesaw a shift in ted to life – 50% ored with 38% in
20082009Increase (Net)Increase (%)
s made possible by the gts of organizations that co
TERLY UPDAT
Ac
Ac
Po
g about
htly: 34 educing s year, 8% and ).
growth 2008 to ing the
markets. e year – 45% of
nsion of an the
ugh 2.1 with the
well as alue of deposit
(77%) m to be Bs also s – 84% , given larger
market balance
of 2009. h these tending
ets now erms of
of policy n 2008.
5
1,0
1,5
2,0
2,5
Act
ive
Bor
row
ers
(000
's)
5
1,0
1,5
2,0
2,5
3,0
3,5
Polic
y H
olde
rs (
000'
s)
Active Borrow ers
M1,732,8791,826,045
93,1665
Microcre
50
1,00
1,50
2,00
2,50
Act
ive
Save
rs (
000'
s)
enerous support from theontributed their data (for
TE ON MICR
ctive Borrowers b
ctive Savers by Pe
olicy Holders by P
3
2
3
5
0
500
000
500
000
500
2
2
3
3
3
0
500
000
500
000
500
000
500
20
Value(PKR
Millions)
AcSav
18,752 1,7421,723 2,352,970 60
16
edit M
142
80
4
0
00
00
00
00
00
20
e Department for Internat citations, see back cove
ROFINANCE O
by Peer Group
eer Group
Peer Group
35%
27%
33%
5%
008Year
26%
33%
38%
3%
008
Quarter
ctive vers
Value(PKR
Millions43,609 551,273 807,664 3
35
Micro-Savings
4%2%
0%
4%
008Year
tional Development (UK)er).
OUTREACH
39%
26%
29%
6%
2009
18%
21%
58%
3%
2009
eR s)
Policy Holders
,384 2,241,552,554 3,306,639,171 1,065,087
59 48
Micro-
19%1%
77%
3%
2009
IN PAKISTA
Others
RSP
MFI
MFB
Others
RSP
MFI
MFB
Sum Insured(PKR
Millions)2 34,3409 43,5397 9,1998 27
Insurance
Others
RSP
MFI
MFB
AN
02
* G
eogr
aphi
cal b
ound
arie
s fo
r new
dis
trict
s de
mar
cate
d in
200
4-06
hav
e no
t bee
n m
ade
avai
labl
e by
Sur
vey
of P
akis
tan.
The
follo
win
g di
stric
ts a
re th
eref
ore,
not
sho
wn
on th
e m
ap: S
ehw
an S
harif
, Jam
shor
o (D
adu)
; Mat
yari,
Tan
do A
llahy
ar, T
ando
Muh
amm
ad K
han
(Hyd
erab
ad);
Shed
adko
t (La
rkan
a); M
ingo
ra (S
wat
); S
hera
ni (Z
hob)
MARKET HIGHLIGHTS (JAN-DEC 2009)
MicroWATCH
03
MICROCREDIT
0 10 20 30 40 50
OPP
BRAC
TMFB
KB
FMFBL
Increase (000’s)
MFP
C. Largest Providers of Microcredit (Active Borrowers)
E. MFPs with Largest Geographic Spread
0 100 200 300 400
RCDS
NMFB
TMFB
SDF
KMFB
Increase (%)
MFP
D. Largest Providers of Microcredit (Gross Loan Portfolio)
Gross Loan Portfolio Gross Loan Portfolio by Methodology
Active Borrowers by Gender Active Borrowers by Rural/Urban
Exchange Rate (Dec 2009): PKR/USD = 84.2/1
SUMMARY OF MICROCREDIT PROVISION (All Pakistan)
06
MicroWATCH
92% 90%
8% 10%
0200400600800
1,0001,2001,4001,6001,8002,000
2008 2009
Act
ive
Bor
row
ers
(000
's)
Year
Indiv idual
Group
0
55%
0
45%
0
5,000
10,000
15,000
20,000
25,000
2008 2009
Valu
e (P
KR M
illio
ns)
Year
Female
Male
21% 28%
25%22%
46%39%
8%11%
0
2,000
4,000
6,000
8,000
10,000
12,000
2008 2009
Num
ber o
f Sta
ff
Year
Others
RSP
MFI
MFB
24% 29%
16%14%
31%36%
7%9%
7%
6%1%
0%12%6%
0200400600800
1,0001,2001,4001,6001,8002,000
2008 2009
Act
ive
Bor
row
ers
(000
's)
Year
Other
Housing
Manufacturing/Production
Services
Trade
Livestock/Poultry
Agriculture
SUMMARY OF MICRO-SAVINGS PROVISION (All Pakistan)
Saving Methodology:
1. Intermediation: Public deposits used to finance an organization’s loan portfolio. Only SBP-regulated MFPs (CFIs and MFBs) can accept and intermediate deposits from the general public.
2. Mobilization: MFPs not regulated by SBP (MFIs, NGOs, RSPs) can neither hold nor intermediate deposits from the general public. These organizations do however mobilize savings from their members/clients to place with licensed commercial banks.
Number of Branches/Units Microcredit Micro-Savings Micro-Insurance
MicroWATCH
15
OTHER NEWS ITEMS
MoU between FMFBL and AKPBS for self-built housing
The First MicroFinance Bank Ltd. (FMFBL) and the Aga Khan Planning and Building Service (AKPBS) Pakistan signed an MoU to improve the poor’s living standards by providing financial services coupled with a technical advisory. This initiative is for support of self-building of houses by low income and poor communities in the country. FMFB shall provide need-based, short to long term housing finance for both structural and non-structural improvements at a relatively lower interest rate, through group lending. The AKPBS shall provide technical consultancy to the client for developing a sketch of the proposed construction or improvement and monitoring construction of the houses to ensure construction safety to mitigate natural risks. Loans will amount from PKR 10,000 to 500,000.
Renewal of accord between FMFBL and PPO
The First MicroFinance Bank Ltd. and the Pakistan Post Office renewed their agreement to alleviate poverty by reaching out to the poor through the vast network provided by PPO sub-offices. This unique public-private partnership aims to target the issue of inaccessibility of the microfinance client. This partnership was first established in 2008 and resulted in rapid scaling up of quality microfinance services to the poor residing in remote urban and rural areas of the country.
Tameer and Telenor launch ‘Mobile Accounts’ service
Tameer Microfinance bank and Telenor Pakistan announced the launch of Mobile Accounts, the third in a suite of products under ‘easypaisa’. This is a first of its kind product in Pakistan that offers customers the convenience of carrying out transactions through their mobile phones. These provide utility bill payments, bill payments and cash withdrawal services through 5,500+ retail outlets across Pakistan.
The other two previously launched products in the ‘easypaisa’ portfolio were Money Transfer and Bill Payment facilities.
Citi-LUMS Roundtable on microfinance
A roundtable conference was jointly held by the Citi Foundation and Lahore University of Management Sciences, to inaugurate a Management Development Training Programme for Microfinance Institutions, under a US$ 65,000 grant from the Citi Foundation. The aim of the conference was to discuss best practices amongst microfinance practitioners and key stakeholders, and was attended by experts from banking and finance as well as development. Two microfinance trainings for both middle and top tier MFP managers are to follow in the near future.
Second Gender and Microfinance Workshop held in Lahore This was the second workshop to be held on the subject, having the theme of ‘Current trends, Issues and Concerns in the Sector’. Various players from the microfinance sector participated, including MFBs, MFIs, RSPs and key stakeholder organizations. Relevant lessons from microfinance organizations, nationally as well as internationally, were shared and strategies for sustainable microfinance were discussed. The workshop was co-sponsored by the PPAF and Oxfam-Novib.
PMN’s academic linkages: MoUs with IBA and IoBM The PMN signed separate MoUs with Institute of Business Administration and the Institute of Business Management (both are business institutes in Karachi), wherein students will be informed of projects, internships and job opportunities at PMN member organizations. The institutes will inform PMN about applicants for jobs and projects while allowing microfinance materials to be displayed and distributed. Exchange of dialogue and information will be facilitated through research forums, lectures and conferences.
1 Due to reconciliation of data at PRSP, this issue of the MicroWatch does not include district wise data on insurance for the fourth quarter of 2009. 2 Chagai district was divided into two districts (Nushki and Chagai) in 2005. The potential microfinance market estimate for Chagai is therefore an overestimation (aggregate of potential markets for Nushki and Chagai). 3 Population data for Nushki district is not available. Nushki was carved out of Chagai district in 2005. Thus, the potential microfinance market estimate for Chagai is an aggregate of the potential market for Chagai and Nushki. 4 Population data for Sherani district is not available, Sherani was carved out of Zhob district in 2005 5 Zhob was divided into two districts (Zhob and Sherani) in 2005, The potential microfinance market estimate for Zhob is therefore an overestimation (aggregate of potential markets for Zhob and Sherani). 6 Population data for Mingora district is not available. Mingora was carved out of Swat district in 2005. Thus, the potential microfinance market estimate for the district of Swat is an aggregate of the potential market for Mingora and Swat. 7 Swat district was divided into two districts (Swat and Mingora) in 2005. The potential market estimate for Swat is therefore an overestimation (aggregate of potential markets for Mingora and Swat). The estimate is based on 1998 DCR population data
available for Swat. 8 OPP does not provide retail microcredit services in Gujranwala and Khushab. It wholesales funds to partner organizations: Mehran Education Welfare Society, and Soan Valley Development Program, respectively. 9 Population data for the district of Nankana Sahib is not available. The district was carved out of Sheikhupura district in 2005. Thus, the estimate for the district of Sheikhupura is an aggregate of the potential market for Sheikhupura and Nankana Sahib
(based on 1998 DCR population data available for Sheikhupura). 10 OPP does not provide retail microcredit services in Rawalpindi. It wholesales funds to a partner organization: Alfalah Development Organization. 11 OPP does not provide retail microcredit services in Dadu. It wholesales funds to a partner organization: Soofi Shah Inayat Shaheed Sanghat. 12 Hyderabad district was divided into four districts in 2006. These are Hyderabad, Matyari, Tando Muhammad Khan, and Tando Allahyar. Thus, the potential microfinance market estimate for Hyderabad is an aggregate of all four resulting districts (based
on 1998 DCR population data available for Hyderabad). 13 Population data for Jamshoro district is not available. The district is new and was carved out of Dadu district in 2006. Thus, the estimate for Dadu also includes the estimate for the recently created Jamshoro district. 14 The market estimate for Karachi is the aggregate of four districts namely, Central, West, East, and South. 15 OPP does not provide retail microcredit services in Khairpur. It wholesales funds to partner organizations: Khaiji Cooperative Society, Goth Seenghar, and Marvi Rural Development Organization. 16 Population data for Matyari district is not available. The district was carved out of Hyderabad district in 2006. Thus, the estimate for Hyderabad also includes the estimate for the recently created Matyari district. 17 OPP does not provide retail microcredit services in Mirpur Khas, Nawabshah, Naushahro Feroze, Thatta and Umer Kot. It wholesales funds to a number of partner organizations: Sindh Rural Partner Organization; Shah Sachal Sami Welfare Association;
Village Welfare Society; Sindh Community Development Organization; Ghulam Qadir Group; and Shama Roshan Social Welfare Development Organization, respectively. 18 Population data for districts Tando Allahyar and Tando Muhammad Khan is not available. The districts were carved out of Hyderabad district in 2006. Thus, the microfinance market estimate for Hyderabad is an aggregate of the potential markets in the
recently created Tando Allahyar, Matyari and Tando Muhammad Khan districts. 19 Due to unavailability of population data for the Azad Jammu and Kashmir (AJK) districts, the potential microfinance market could not be estimated. 20 Due to unavailability of population data for the Federally Administered Northern Areas (FANA) the potential microfinance market could not be estimated. 21 Due to unavailability of population data for the Federally Administered Tribal Areas (FATA), the potential microfinance market could not be estimated.
REPORTING ORGANIZATIONS
Author: Zahra Khalid Data Collection and Compilation: Moazzam Iqbal Design & Layout: Pakistan Microfinance Network Printed at: Creative Junction
MFB Kashf Microfinance BankKhushhali Bank (KB)Netw ork MicroFinance Bank Ltd. (NMFB)Pak-Oman Microfinance Bank Ltd. (POMFB)Rozgar Microfinance Bank Ltd. (RMFB)Tameer Microfinance Bank Ltd. (TMFB)The First MicroFinanceBank Ltd. (FMFB)
MFI Akhuw atASA InternationalAsasahCommunity Support Concern (CSC)Development Action for Mobilization and Emancipation (DAMEN)Kashf FoundationOrangi Pilot Project (OPP)Sindh Agricultural and Forestry Workers Cooperative Organization (SAFWC
RSP Lachi Poverty Reduction Project (LPRP)National Rural Support Programme (NRSP)Punjab Rural Support Programme (PRSP)Sarhad Rural Support Programme (SRSP)Thardeep Rural Development Programme (TRDP)
Others BRACCentre for Women Cooperative Development (CWCD)Jinnah Welfare Society (JWS)Narow al Rural Development Programme (NRDP)Organization for Participatory Development (OPD)Rural Community Development Society (RCDS)Save the Poor (STP)Sindh Rural Support Program (SRSP)Sungi Development Foundation (SDF)Sw abi Women’s Welfare Society (SWWS)ORIX Leasing Pakistan Ltd. (OLP)Bank of Khyber (BOK)
Rural support programme running microfinance operation as part of multi-dimensional rural development programme