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| Population (millions) | 144.9 |
| Gross domestic savings (% of GDP) | 14.4% |
| % Population under $2/day (PPP) | 66% |
| Size of informal sector | 36 percent |
| Regulated microfinance institutions | Commercial Banks, Microfinance Institutions, Khushhali Bank (KB) |
| Non-regulated sources of microfinance | NGO-MFIs, Rural Support Programs (RSPs) |
| Predominant informal finance mechanisms (ROSCAs, tontines, etc.) | ROSCAs, temporary loans from friends and relatives, loan from money lenders and wholesalers and purchases on credit from shopkeepers/agricultural-input dealers/suppliers etc. |
General Approach to Regulating
Based on the Comparative Database on Microfinance Regulation by the IRIS Center of the University of Maryland
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Commercial Banks |
Microfinance Banks |
Khushhali Bank |
Non-profit institutions |
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| Definition or description of institution | Provides financial services | Regulated, deposit taking banks that serve the poor and micro-enterprises and are required to take license from State Bank of Pakistan (SBP) to operate | Provides microfinance services to the poor, public-private partnership | NA |
| Guidelines & restrictions on financial services | Permitted: Savings, time and demand deposits; credit; foreign currency deposits; investment banking services; trade related services; payments, remittances Prohibited: Directly or indirectly bartering or trading goods |
Permitted: Savings, time and demand deposits; credit; correspondent services; acting as collecting agent; mortgage and chattel mortgage; mobile banking; accept remittances Prohibited: Dealing in foreign exchange or foreign trade |
No dealing in foreign exchange or foreign trade | Credit only |
The First MicroFinance Bank Ltd. (FMFBL)
Taken from: Finance for the Poor, ADB, 2004, page 7
The First MicroFinance Bank Ltd. (FMFBL) was established in November 2001 and commenced its operations in April 2002. FMFBL provides deposit, lending, and other financial services. The savings products that the bank offers are all voluntary. Currently, it offers five different savings products: noninterest bearing current account, ordinary savings account, profit and loss sharing savings account, microcash maximiser account (primarily for large depositors with a minimum deposit of $8,700) and term deposit accounts. The bank has achieved impressive results already in deposit mobilization, indicating that people's trust in the bank is increasing. At the end of May 2004, the bank had 13,578 deposit accounts of various types with a total outstanding deposit volume of $7.7 million. Its deposit volume at the end of May 2004 was more than 3 times the loan volume. FMFBL reports that about 80% of its deposit clients have an average deposit balance of about Pakistan rupees (PRs) 500 (about $8). A person needs only his/ her National Identity Card and PRs 5 to open an account with the bank.
See also:
Kashf Foundation - Pakistan, by S. Mosedale, 2001.
Best practices and Standards, Pakistan, Asia Resource Centre for Microfinance
Asia Resource Centre for Microfinance
Summary of the Poverty and Social Impact Assessment: Pakistan Microfinance Policy, 2006, Oxford Policy Management