PPAF launches Program for Increasing Sustainable Microfinance

July 3, 2008 

The Governor, State Bank of Pakistan, Dr. Shamshad Akhtar, inaugurated Pakistan Poverty Alleviation Fund’s flagship project “Program for Increasing Sustainable Microfinance (PRISM)” for financial sustainability and expansion of microfinance organizations in the country on Thursday.  

Mr. Ya Tian, Country Program Manager for International Fund for Agricultural Development (IFAD), Rome, along with a four-member delegation from IFAD, Mr. Kamal Hyat, CEO/MD, PPAF, and others were also present on this occasion.

The anticipated outcomes of the US $45 million program (supported by IFAD) would enable microfinance institutions (MFIs) to diversify their sources of funding by accessing funding from commercial sources. It would also help operate MFIs as financially sound and sustainable organisations and would further expand microfinance outreach to rural areas. The core programme component seeks to develop a set of credit enhancement mechanisms targeted at sustainable MFIs and microfinance banks to become attractive potential clients for banks/commercial financial markets. It would also enable the most dynamic MFIs to access commercial financing to realize their growth potential and expansion to rural areas besides facilitating the MFIs to strengthen their institutions and access commercial funding.

It would further promote conducive environment for growth in microfinance, help in increasing understanding of microfinance by commercial sector players and contribute to a positive policy environment for microfinance operators. It would improve awareness by MFIs as how to work with commercial sector.

Governor State Bank of Pakistan Dr. Shamshad Akhtar, addressing inaugural workshop

of Program for Increasing Sustainable Microfinance in Islamabad