Annual Reports
As we come to a close of our financial year, another year in our journey of Ishq, Ilm and Aml, it is time to reflect on our various opportunities, and take pride in our achievements and review the many challenges and obstacles that we have overcome. It has been another busy year for PPAF with innovative projects undertaken, and relationships being built.

The completion of PPAF III marks the graduation of PPAF as a mature institution that can implement complex multi-sectoral projects, absorb substantial resources and work simultaneously with multiple development partners. Moreover with the close of PPAF III, PPAF has emerged as a stronger, independent and innovative organization based on the lessons learned and research conducted over the course of 15 years. As the project comes to a close, PPAF, the Government of Pakistan and the World Bank reflect on a partnership that was formed in the year 2000. The investment of IDA financing and implementation support for 15 years witnessed the full delivery of project objectives, a number of important innovations in poverty reduction approaches with potential global reach, and a strengthening of the Government of Pakistan’s poverty reduction mandate.

PPAF-III was built on eight years of Pakistan Poverty Alleviation Fund (PPAF) experience. The project improved poverty outcomes through a consolidation and saturation approach in targeted areas, with a stronger focus on marginalized groups of the most vulnerable and poorest households including women and those with special needs, through integrated approaches to livelihood enhancement.

Several Global Indicators reveal that Pakistan continues facing challenges with gender equality and inclusion. At PPAF, we take these indicators very seriously and have been committed to manifesting inclusion a priority in our work. As an organization built on the mandate of empowerment, PPAF’s Gender Committee (GenCom) successfully hosted 4 provincial workshops titled: Voices from the Field on Equity and Inclusion in Karachi, Peshawar, Lahore and Quetta respectively on dates from February 11-March 25th 2016.
This design provided a unique platform that allowed dialogue and discourse between the provincial governments; partner organizations and social organizers to develop a proposal on how to collaboratively achieve Sustainable Development Goal 5: Gender Equality. Each workshop was modeled with a representative from the provincial government and panelists from the UN and several partner organizations. More importantly, social organizers from PPAF’s partner organizations were in attendance to share their experiences working on gender empowerment from the field perspective.

Moving forward with implementing Sustainable Development Goal 5: Gender Equality, PPAF continues to honor and celebrate women and their work to strengthen communities all over Pakistan. While Pakistan has achieved some progress in regards to female empowerment, there is a desperate need for policies and sound implementation to increase Pakistan’s gender measurements and overall indicators. PPAF continues to nurture gender empowerment as fundamental human right in order to build prosperity and sustainability. Providing women with education, access to health, protection against violence and ensuring their political representation met will build a stronger more vibrant Pakistan.

Resulting in successful experiences working with PPAF, the Government of Pakistan had requested PPAF to design, mobilize, implement and monitor the Prime Minister’s Interest Free Loan Scheme (PMIFL) through its partner organizations. PPAF is targeting least developed and the most deserving areas where it has already invested in terms of social mobilization, livelihood projects, training, health, education, water, small infrastructure and rehabilitation projects. The scheme has been successful in making interest free loans available to men, women and youth from vulnerable and marginalized households. Cumulatively, RS 4,069 million has been disbursed to 188,785 borrowers since the initiation of the project. Out of the total beneficiaries, 62% are women. The loans are aimed at identifying and strengthening common interest groups, asset establishment, creating employment centers and developing linkages to foster growth.

PPAF contributed its efforts in aiding conflict areas by carrying out the interventions through the Livelihood Support and Promotion of Small Community Infrastructure Project (LACIP). LACIP was initiated in April 2012 with financial support of the Federal Republic of Germany through KfW and is being executed by Pakistan Poverty Alleviation Fund for last four years. LACIP is an integrated poverty reduction program that aims to contribute to the improvement of the general living conditions, quality of life, reduction in vulnerabilities to disasters, and to increase income generating opportunities for the ANNUAL REPORT 2016 | 08 poor living in 56 union councils of eight selected districts of Khyber Pakhtunkhwa in Pakistan.

LACIP continued its focus on creating opportunities and building institutions and pathways out of poverty for the poor and disadvantaged communities across Pakistan through empowering community institutions which acts as the foundation for sustainable poverty alleviation. We continue to grow our alliances and networks and strongly acknowledge PPAF partner organizations for implementing our developmental initiatives.

The Government of Italy through the Directorate General for Development Cooperation (DGCS), is financing the PPAF programme “Poverty Reduction through Rural Development in Balochistan, KP and FATA”. Under this programme, PPAF has taken some new initiatives resulting in some strategic shift from its standard approach. This programme is exciting and challenging for PPAF as it is an opportunity for the organization to reprogram itself in the light of those learning, best practices and experiences. PPR provides fresh approaches to the partner selection process, preparing for entering an area, socio economic development programme and union council development plans. Additionally, the programme aims to establish social and productive systems of infrastructure and the creation of a sustainable social safety net. The programme also aims to enhance and promote local artisans. They play a significant role in preserving heritage, developing and promoting cultural industries. Keeping in view the potential of local artisans, PPAF is promoting handicraft through special platforms to showcase their work. In order to add value in aiding Pakistan’s continuous energy crisis, PPAF established an independent Renewable Energy (RE) Unit, and is implementing a KfW supported Hydro and Renewable Energy Project which is involved in the development of indigenous renewable energy resources (small scale hydropower, solar, wind and biomass) to generate electricity locally to off grid communities in KPK. The RE Unit was successful in designing four solar PV mini grid projects that have been completed in coastal areas of Sindh and 96 Solar PV Projects in three districts Swabi, Karak and Lakki Marwat of Khyber Pukhunkhwa Province have been initiated.

As a sector developer, PPAF continued its efforts to improve the business environment and foster growth in the microfinance sector of the country. Forming a strategic relationship with the government, regulators, investors, practitioners, public sector entities and other stakeholders has yielded a conducive environment for microfinance to be rated as one of the best in the world by Economist Intelligence Unit. PPAF, the United Kingdom’s Department for International Development (DFID) through Karandaaz and Germany’s development bank (KfW) have signed a Shareholder’s Agreement for the establishment of Pakistan Microfinance Investment Company (PMIC).

With the growing youth population of Pakistan, PMIC will be pivotal in reducing unemployment in the country. Senator, Mohammad Ishaq Dar, Finance Minister commended the shareholders of PMIC by highlighting their initiatives to create and promote the growth of microfinance in Pakistan. 8 million micro enterprises and individuals will be able to access financing and business opportunities will be created amongst the most vulnerable segments of society. The objective of PMIC is to provide liquidity to microfinance providers, with the hope of creating 300,000 new job opportunities per year. The company will inherit the institutional values of PPAF and continue to follow the double bottom-line approach of financial sustainability and positive social impact. All this significantly contributed to another year of consistent growth and development in the microfinance sector of Pakistan. As of March 31, 2016, the finance sector is serving 4.0 million active borrowers, 5.5 million micro-insurance policyholders, and 13.7 million savers. The microcredit penetration rate has increased to 19.5% while the potential microfinance market is estimated at more than 20.5 million client. The number of branches serving the poor to offer financial services has crossed to 3,000 (it was 2,700 in the last year), gross loan portfolio exceeds PKR 105 billion (30% higher from the year 2014). The average amount of loan disbursed is PKR 35,223 (showing an increase of 12% from last year).

We are grateful to the Government of Pakistan for their assistance and proactive support, to our Board and General Body for their direction and advice, to our bilateral and multilateral donors who continue to trust and have confidence on our delivery. Finally, we applaud the women, men and children in the communities we work with, whose courage and spirit inspires us to work harder.
Qazi Azmat Isa
Chief Executive Officer
For complete Annual Report 2016 (English)     Download here
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