Microcredit Micro-Savings Micro-Insurance. Active Borrowers 2,000 1,800 1,600 1,400 1,200 1, Active Borrowers (000 s)

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1 MicroWATCH A quarterly update on microfinance OUTREACH in Pakistan ISSUE 9: QUARTER (JULSEP 8) U nlike the previous two quarters, the sector's growth in microcredit decelerated marginally in the third quarter of 8 as active borrowers grew by only 7 percent. This decline was more pronounced in terms of value than active borrowers, coming down to 9 percent from the 9 percent growth of the last quarter. In absolute 8Q terms also, the net increase in active borrowers was the lowest this year. This is attributable to Increase (Net) which after being the biggest contributor to sector expansion over the past few months Increase (%) posted its lowest absolute increase in active borrowers for this year i.e. 9, compared to 8, for the past three months. In other s, BRAC continued its rapid expansion and posted the highest percentage increase in active borrowers for the second consecutive quarter. In terms of active borrowers, rural support programs (RSPs) maintained their position as the dominant peer group (for definitions of peer groups please refer to the back cover of the report), while microfinance banks (MFBs) marginally increased their market share once again. This steady expansion of MFBs is due largely to the modest yet consistent growth of. Most of the credit indicators remained essentially the same: group lending heavily outweighed individual lending and the urban/rural divide tilted slightly in favor of rural borrowers. As female focused s have slowed expansion, the gender distribution of the sector's borrowers has once again begun to favor the male clients compared to December 7 and March 8 when the sector posted an even gender distribution of the borrowers' portfolio. Bahawalpur once again emerged as the most active microfinance market with the highest penetration rate of all districts, with Lahore as a close second. The overall penetration rate in the country increased. Growth in savings picked up in terms of active savers, increasing to 7 percent from the percent in the last quarter. Interestingly however, growth in the overall value of savings decreased significantly, falling to 6 percent from the percent posted previously. This dip can be accredited to as the bank only added Rs. 7 million to its deposits compared to Rs. 5 million in the second quarter. The biggest contributor in terms of increase in active savers was once again, which continues to dominate the market with a 54.4 percent share. Largely because of this, RSPs continued to be the dominant peer group in terms of active savers, despite marginal increases in the market shares for MFBs and NGOs. Microinsurance outreach once again posted astronomical growth with an increase of 6 percent in policy holders, and 6 percent in insured sum. However it is important to note that made a few adjustments in the reporting of its insurance portfolio (see end notes). The apparent growth, therefore, is more indicative of these adjustments as opposed to an actual increase in insurance outreach. Similarly, growth in the share for RSPs in terms of policy holders and insured sum, as well as 's share in the market, are also largely accountable to the abovementioned adjustments. Another major change was the increase in the market share for Khushhali Bank () 6.4 percent from the 8. percent posted last quarter. As with, this is largely due to alterations in their reporting rather than actual growth (see end notes). 's apparent growth is the major reason the gender distribution favored female policy holders more than the previous quarter as their share rose to 64 percent from 59 percent. With a percent increase in policy holders, Bahawalnagar emerged as the district with the highest percentage growth; followed closely by Bahawalpur at 9.5 percent. DFID Department for International Development Active Borrowers MicroSavings MicroInsurance Active Borrowers by Peer Group Pakistan Micr finance Network Licenced under Section 4 of Companies Ordinance 984 MicroWATCH is a publication of the Pakistan Network (PMN). It was made possible by the generous support from the Department for International Development (UK) and the Citi Foundation. This is also the result of the efforts of organizations that contributed their data (for citations, see back cover). ( s) Value (PKR Millions) Active Savers MicroWATCH by Peer Group by Peer Group Value (PKR Millions) Policy Holders (PKR Millions) 8Q,754,8 9,648,7,95 4,69,576,8 5,8,87,58,47,857,77 4,96,,89 7,84 7,9,779 4, ,98,64 Active Borrowers ( s) ( s) ,,8,6,4,, 8 6 4,,8,6,4,, 8 6 4,6,4,,,8,6,4,, % 5% 6% % 5% 9% 5% 4% % 5% 9% % % 5% 9% % % % % % 7Q4 8Q 8Q 8Q % % % % 8% 8% % % % % 8Q 8Q % % % 4% % % % 4% % 6% 8Q 8Q CFI NGO RSP MFI MFB CFI NGO RSP MFI MFB CFI NGO RSP MFI MFB

2 Distribution of Active Borrowers CHITRAL GILGIT AGENCY UPPER DIR KOHISTAN GWADAR KECH PANJGUR CHAGAI KHARAN NUSHKI AWARAN QILA ABDULLAH QILA SAIFULLAH PISHIN KALAT QUETTA MASTUNG KHUZDAR ZIARAT BOLAN JHAL MAGSI DERA BUGTI NASIRABAD JACOBABAD JAFARABAD SHIKARPUR GHOTKI DADU KARACHI SIBI KOHLU KHAIRPUR NAUSHAHRO FEROZE NAWABSHAH ZHOB LORALAI BADIN BARKHAN SUKKUR SANGHAR HYDERABAD MIRPUR KHAS THATTA LOWER DIR SWAT BATGRAM DAGGAR MALAKAND MANSEHRA CHARSADDA MARDAN SWABI ABBOTTABAD HARIPUR PESHAWAR ATTOCK HANGU KOHAT RAWALPINDI BANNU KARAK CHAKWAL JHELUM LAKKI MARWAT MIANWALI TANK DERA ISMAIL KHAN MUSAKHEL RAHIMYAR KHAN UMER KOT LEYYAH DERA GHAZI KHAN RAJANPUR MULTAN MUZAFFARGARH THARPARKER NOWSHERA MANDI BAHAUDDIN NAROWAL KHUSHAB GUJRANWALA SARGODHA HAFIZABAD SHEKHUPURA LAHORE NANKHANA SAHIB JHANG BHAKKAR FAISALABAD TOBA TEK SINGH LODHRAN BAHAWALPUR SAHIWAL KHANEWAL VIHARI GUJRAT SIALKOT F A T A LASBELA LARKANA ISLAMABAD KASUR OKARA PAKPATTAN BAHAWALNAGAR KASHMIR (DISPUTED TERRITORY) Legend Scale Active Borrowers N/A,, 5, 5, 5, 5,, >, * Geographical boundaries for new districts demarcated in 46 have not been made available by Survey of Pakistan. The following districts are therefore, not shown on the map: Sehwan Sharif, Jamshoro (Dadu); Matyari, Tando Allahyar, Tando Muhammad Khan (Hyderabad); Shedadkot (Larkana); Mingora (Swat); Sherani (Zhob)

3 MicroWATCH MARKET HIGHLIGHTS (JUL, 8 SEP, 8) MICROCREDIT A. Top 5 s: Increase in Active Borrowers (Net) B. Top 5 s: Increase in Active Borrowers (%) BRAC BRAC SAFWCO JWS Increase ( s) Increase (%) C. Largest Providers of (Active Borrowers) D. s with Largest Geographic Spread Active Borrowers (Sep) Share (% of Active Borrowers) Geographic Spread (No. of s) 64, , Kashf, , Kashf , E. s with Highest Growth (Net) Province Active Borrowers (Sep) Growth ( Jul to Sep) (7) Penetration Rate (%) A Net % B (A/B)* Jafarabad,484, ,9.86 Balochistan Nasirabad, ,78.8 Gwadar, ,57 4. Peshawar 8,6 7, , N.W.F.P Abbottabad 6,8, 9.8 8,67.4 Chitral Lahore 8, ,846 86,574, , Punjab Bahawalpur 8,96, , Lodhran 4,544 7, ,69. Larkana 9,, ,89.58 Sindh Dadu 4,, ,5. Ghotki,84, , AJK Muzaffarabad Kotli 8,989,98 5, Bagh,5 4.4 Ghizer 5,85.6 FANA Ghanche, Astore Orakzai, FATA Bajaur Mohmand ICT Islamabad 4, ,75 5.8

4 MARKET HIGHLIGHTS (Jul, 8 Sep, 8) MICROSAVINGS A. Top 5 s: Increase in (Net) B. Top 5 s: Increase in (Net) TRDP NMFB TRDP 4 5 Increase ( s) 5 5 Value (PKR Millions) C. Largest Providers of MicroSavings () D. s with Highest Outreach () TRDP 4 5 Share (Sep) (% of ) 98, ,74 8.4,66., ,68.7 Increase (Sep) ( Jul Sep) Net % Tharparkar,784,54.6 Bahawalpur,6 5, Karachi 6,875 4, Bhawalnagar 55,7 6,78. 5 Badin 5,58 5,98. MICROINSURANCE A. Largest Providers of MicroInsurance () (Sep) Share (% of ) 89, ,4.7 77, ,.9 5 TRDP 46,74. B. s with Highest Outreach () Increase (Sep) (Jul to Sep) Net % Lahore 4,7,4 5.8 Bahawalpur 56,895 74, Karachi 98,59 4, 4. 4 Faisalabad 9, Bhawalnagar 89,58 44,6. 4

5 MicroWATCH SUMMARY OF MICROCREDIT PROVISION (All Pakistan) Exchange Rate (Sep 8): PKR/USD = 78./ Indicator Total Lending Methodology Peer Group 8Q 8Q Active Borrowers 8Q 8Q (PKR Millions) 8Q 8Q Average Loan Balance 8Q 8Q Loans Disbursed 8Q 8Q Disbursements (PKR Millions) 8Q 8Q Average Loan Size 8Q 8Q Group Individual MFB MFI RSP NGO CFI, , ,754,8,66,488 7,6 566,4 96,56 69,89 79,85,,87,58,74,,78 6,96 45,874 7,68,8 9,864 9,648 7,665,98 6,85,597 8, ,47 9,6,66 7,,889 8,95,74 4,,794 6,86,9 9,7,69,48 5,866,449,95 8,5,78 9,58,5,595 6,86 75,99 669,48 5,77 6,874 47,9 7,684 9,86, , 49,4 8,9 8,7 6, 6,4 9,67,97,677 9,79 886,87,8 5, ,5 5,59 99,9,88, ,4 4,66 4,774,884,46 7,56 5,975 9,6 4,58,48 5,48 5,,8 5,57 5,96 9,87 by Methodology Value (PKR Millions) 5,, 5,, 5, % 5% 44% 8% % 6% 4% 8% % % CFI NGO RSP MFI MFB Value (PKR Millions) 5,, 5,, 5, % 9% % 89% Individual Group 8Q 8Q 8Q 8Q Active Borrowers by Gender Active Borrowers by Rural/Urban Active Borrowers ( s),,8,6,4,, % 47% 5% 5% 8Q 8Q Female Male Active Borrowers ( s),,8,6,4,, % 59% 4% 4% 8Q 8Q Rural Urban 5

6 SUMMARY OF MICROCREDIT PROVISION (All Pakistan) Active Borrowers by Lending Methodology Distribution of Staff Active Borrowers ( s),,8,6,4,, % 9% 7% 9% 8Q 8Q Individual Group Staff,, 8, 6, 4,, % % 8% 9% 45% 46% 7% 9% 9% 5% 8Q 8Q CFI NGO RSP MFI MFB Active Borrowers by Sector Manufacturing/ Production, 7% Housing, % Other, % Agriculture, 9% Services, 6% Trade, % Livestock/Poultry, 6% SUMMARY OF MICROSAVINGS PROVISION (All Pakistan) Saving Methodology Peer Group Total Intermediation Mobilization MFB MFI RSP NGO CFI Savers 8Q,7,95 5,7,56,9 94,9 8,48,55,6 5, 8Q,857,77 5,7,56,9 4,76 8,4,55,7 5,48 Value of Saving (PKR Millions) 8Q 4,69,76,6,76 5,9 8Q 4,96,48,474,48 5,446 Average Saving Balance 8Q,77 6,4 86 7, Q,67 5, , Saving Methodology:. Intermediation: Public deposits used to finance an organization's loan portfolio. Only SBPregulated s (CFIs and MFBs) can accept and intermediate deposits from the general public.. Mobilization: s 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. 6

7 MicroWATCH SUMMARY OF MICROSAVINGS PROVISION (All Pakistan) by Peer Group by Gender Value (PKR Millions) 6, 5, 4,,,, % % 8% % % 9% % % 7% 7% 8Q 8Q CFI NGO RSP MFI MFB ( s),,8,6,4,, % % 67% 67% 8Q 8Q Female Male Value of Saving by Saving Methodology by Urban/Rural Value (PKR Millions) 6, 5, 4,,,, 8% % 7% 7% 8Q 8Q Mobilization Intermediation ( s),,8,6,4,, % 9% 7% 9% 8Q 8Q Urban Rural SUMMARY OF MICROINSURANCE PROVISION (All Pakistan) Total Type Peer Group Health Life MFB MFI RSP NGO CFI 8Q,576,8 5,9,5,99 5,76 675,78 5,9 49,7,9 8Q,,89 96,98,6,7 6,49 685, 96,98 6,8,967 (PKR Millions) 8Q 5,8 4,6,69 7, Q 7,84 6,78,5 6, by Type by Gender 59% % % 4% % Health Agricultural/Livestock Life Property Other ( s),6,4,,,8,6,4,, % 59% 4% 4% 8Q 8Q Female Male 7

8 SUMMARY OF MICROINSURANCE PROVISION (All Pakistan) by Urban/Rural by Peer Group ( s),6,4,,,8,6,4,, % 5% 4% 5% 8Q 8Q Rural Urban (PKR Million),6,4,,,8,6,4,, % % % 7% % % 9% 4% 8% % 8Q 8Q CFI NGO RSP MFI MFB OUTREACH ( Level) BALOCHISTAN MicroSavings MicroInsurance Awaran Barkhan Bolan Chagai Dera Bugti Gwadar Jafarabad Jhal Magsi Kalat Kech (Turbat) Kharan Khuzdar Kohlu Lasbela Loralai Mastung Musakhel Nasirabad Nushki Panjgur Pishin Qila Abdullah Qila Saifullah Quetta 4 97,484 6,98 67,88,5 6,644,949 4,85,69 7,89,75,88,79,954,47,99 9,796,45,478 6,844,9 6, ,5,,,56,,787, 6, 9,,,5 6,54,88 66,4 54,84 4,77 5,79 5,48,7 8,79,78,,75 9,6,45 55,57 6 4,667 5,65,86 Sibi,956,8,97 Sherani Washuk Zhob 4 Ziarat Total ,8 4,48, 7,6 4,896,99 9,8 7,94,466,84,494,, 4 6,77,7,6 5, 4, 7,969,546,9 9,887 5,884 9,7 47,948 4,4 6,9 84,67 76,879 4,7 7,545 75,78 5,74,79 5, 44,45 74,47 48,944 5,848 7,68,656,76 8

9 MicroWATCH OUTREACH ( Level) NWFP MicroSavings MicroInsurance Abbottabad Abbottabad SRSP SDF 4,654 6,8,6,7,7,747,8,594,64,896,,9,,, 7,75, 8,67 Bannu SRSP 67,8 Bannu Batgram 86,5,787,85 9,65 54,976, 67,8 58,57 Batgram Buner (Daggar),,6,747 9,9 8,65 49,58,,7 58,57 SDF BRAC Buner Charsadda (Daggar),7 9,64,789 9,665,68, 6,59 457,44,9 7,76,7 BRAC 4,85,59,948 9,859 8,8 9,89 4,679, 7,76 Charsadda BOK Chitral 6 8,87 8,667,5,8 9,69,8 8, 57,487,45 84,846 Chitral BOK D.I. Khan 6 7,75 5,776 7,9,95 9,659 99,77,5 6,89,46,665,564 7,99,9,8 84,846 D.I. Khan Hangu BOK 5,94 74,97,65 87,7,9,8 64,648 SRSP Haripur BOK 4 4,99 4, ,88,44 5,658,77,7,4 49,44,7,6 6,84,9 7,,44 8, ,65,6 9,48,9,8 64,648 Haripur Karak SRSP SDF SRSP BOK,67 5,496, ,96,,74 Karak Kohat,56 5,568,48,6 4,767,888,858,44, ,49, 5,94,4,74 4,98 BOK SRSP 6,65 8,8,4,464,4, ,69,5 4,98 Kohat Kohistan Lakki Marwat SRSP ,8 69, 7,74 7,55 Kohistan Lower Dir 7 6, , 76,66 7,74 Lakki Marwat Malakand,476 57,94,96 6,684,78,974 8,549 54,,7 7,55 6,49 Lower Dir 76,66 Malakand Mansehra,88 4, 4,4,,54,44 5,7 8,4,9,6,9,6 9,9, 6,, 6,49 7,88 BOK Mansehra Mardan 45, 5,6 87,9,5 8,695,884 4,6 7,8 9,789,56 7,86,95 5,9,946,578,949,9 4,76,5 7,88 54,988 SDF Mardan Mingora 5 BOK BRAC 45 7,7,99 8,47,9,777,85,84 6,77,94, ,9,7,467,7 54,988 Mingora 5 BOK,7 8,87,96 8 4,,7 Nowshera 8 8,9,5,45,97 987, 5,4 69,6,7,8 SRSP BRAC 8,996 65,5,784,6 87,6,8,4,7,8 Nowshera BOK BRAC SRSP BOK BRAC Peshawar Peshawar SRSP 7 5,5 8,6 6,8,9 6,6,64 7,4,4 84,68,6,599 6,6 6,74 84,45,4 45,9, 45,548 45,548 SRSP Shangla Swabi Swat 6 Tank Upper Dir Total SWWS 9 66,89,44,56 5,764 4,894,7,88,57 4,8,697,544,55,56,767 4,945 9,65,98,54 75,67 6,98,5 64 5,8 5,58,987, 448,844,6 4,5,9,45 6,66,7 86,555 6,446 4,47 4,8,87 9

10 OUTREACH ( Level) PUNJAB Fixed Active Borrowers MicroSavings MicroInsurance Attock Bahawalpur Bhakkar Bhawalnagar Chakwal D.G. Khan Faisalabad Gujranwala Gujrat Hafizabad RCDS JWS OPD ,66 8,96 4,447 5,96 5,9 6,4 96,85 6,96 5,7 9,85 78,,65,688,69,496 57,6,84 88,96,5 48,957,8 58,8,5 845,86,56 78,94,67 6,955,59 9,, 47,8,6 45,99 55,7 5,897,4 4,6,4, 7, 94,5,844 45,876,57 6,975,65 9,6,88 7,477,56 59,85,4 7,44,644 7,769,7 7,7,55,4,4 7,98 4,59 45,86 77,44 4,74 9,55 87,49 75,4 7,45,5 495,,967 4,,,7,6,6,,,665,5 46,69,8 5,778,884 49,97,95 684,65,47,97,68 5,9,59 6,87 46,777 5,45 47,84 9,565 49,5,96,94 75,74 446,6,7 Mobile Jhang Jhelum Kasur CSC DAMEN RCDS 8 5,67,889 54,9,447, 9,6,97 5,54,77 4,4 6,94 9,9 7,6,976 6,975,7,7,6 4,4 4,9 6,8 478,45,44 46,97, 448,54,767 66,546 7, ,47

11 MicroWATCH OUTREACH ( Level) PUNJAB MicroSavings MicroInsurance Khanewal 5 9,5,89,85 7,8 8,454,98 5,6,8,445,58 4,948 Khushab 4, 78,5,49 48,894 48,68,644 8,87 989,,58 5,6 Lahore BOK BRAC CSC DAMEN 86,574,89,697,6 4,654 77,7,857 4,7,495,96,5 87,76 Layyah 6 4,76,85,67 4,5 6,96,8,54 7,8,994 6,5 Lodhran 4,544 65,6,647 4,7,878,47 9,858,,949,84 6,69 Mandi Bahauddin 6 8,46 66,8,7,94 45,96 5,99 5,7,5 98,7 Mianwali Multan BRAC 65, 75,64 85,88,495 86,66,48,787 47,5,84,65 8,779, 8,78 67,86,4,89,4,48,58,98 5,4 689,9 Muzaffargarh 5 8,48 7,8,89 8,8,7,96,55 99,4,5 57,58 Nankana Sahib 8 Narowal Okara Pakpattan Rahimyar Khan Rajanpur DAMEN RCDS NRDP DAMEN 7 5,795,7,96 5,7, ,9 96,,94 4,4,65, ,8, 68, ,69 4,567 9,899 7,,,744 4,99,84 589,5,6 9,,54 8,88,799 6,,97 9,478,87 8,97,64 94,5, 56,58,5 9,9 7,9 5,7,569 49,97,5 845,6,7,8,55, ,87,4 59,84 8, ,75 6,46

12 OUTREACH ( Level) PUNJAB MicroSavings MicroInsurance Rawalpindi , 456,67,96 5,58 67,55,759 8,769 47,575,96 7,457 Sahiwal BRAC 5,69 67,5,5,856 4,74,78 48,8 79,795,8 95,468 Sargodha 4 9,855 66,54,58 4,967 4,997,5 5, 675,77,9 67,679 Sheikhupura DAMEN RCDS 8,66 98,,98 6,69,467,755 8,977 8,44,787 8,5 Sialkot,86,64,6 9,989 5,8,56,94 9,7,64 5,997 Toba Tek Singh 9,487 74,478,6 5,876,6,48,7 655,567,85 9,6 Vihari 5 8,74 5,965,49 5,56 4,778,74 7, ,986,84 475,98 Total,9,79,6 4,956,44,46,5,97,58,74,697,467,874 5,79,94,58 5,,94 SINDH MicroSavings MicroInsurance Badin Dadu Ghotki Hyderabad TRDP SAFWCO 9 5 4,795 4,,84 4,57,6 49,64,66 4,87,56 47, 97 5,8 4,666 46,4,75 45,4,4,64,,76 4,86 4,5,6, 4,584,8 6,458,768 94,78 447,5 48,44 6,5 45,98,644,99 9,5,4 4, 975,65,855 57,65

13 MicroWATCH OUTREACH ( Level) SINDH MicroSavings MicroInsurance Jacobabad Jamshoro Karachi TRDP NMFB RMFB 4, 86 96,677 45,56,56 5,4,746 94,686,57,896,8 6,875 69,67, 8,76,9,77,7,5,646 9,88 4,969,5 6,666,486 6,46,9,99 Khairpur 4 TRDP 4,89 4,,4 6,56 57,,49,869 5,744,4 4,85 Larkana Matyari 5 SAFWCO 6 7 9, 4,8,94,656 5,67,97,8 4,7,6,8 7,,5 5,457 7,96 6,7,5 77,66, 54,89 Mirpur Khas 6 6,999 5,884,9 4,58,,45 6,45 9,996,6,494 Naushahro Feroze 6,4 8,56,4 99,95,9,94 4,44,54 66,46 Nawabshah SAFWCO 8 9,44,49,84 5,67,86,88,96 97,85,774 5,4 Sanghar Sehwan Sharif Shehdad Kot Shikarpur SAFWCO Sukkur 9,46,985 88,55,48 5,69,699 79,66, 4,96 7 6,667,77,57,4 54,,44,75,988, 9,9, 7,6,486,66,476,86 5,99,6 5, 56,876,88,8 Tando Allahyar 7 5 8,75 95,96,769 6,5 9,4,854 6,85,666,858 Tando Muhammad Khan 5 8,65 5,578,86 8,445 4,,67 8,6 84,487,4 Tharparkar TRDP 5,7 97,565,47,784,65,7,97 7,8,65 45,46 Thatta 8 7,5 76,8,4 4,88 7,97,58 5, 9,659,64 8,49 Umer Kot TRDP 6 9,4 86,87,88 4,87 8,6,89,99 9,47,468 85,966 Total 9 4 7,99 4,4,76,75 47,69,48,78,5 8,55,75,57,8 6,57,795

14 OUTREACH ( Level) AZAD JAMMU AND KASHMIR (AJK) MicroSavings MicroInsurance 8 Bagh Bhimber Kotli Mirpur Muzaffarabad Neelum Poonch Sudhnati Total 6 4 6,5,4 5,884 8,989 4,88 54,54 9,84,67,6,9 45,846,99 69,,9 68, 7,569,6 4,68,9 4,578,9,587 6,,794,976 7,659,8 6,9,67,47,54 6,459,7 5,96,4,8,744 44,,496,694 87,596 6,6 98,9,6,4 5,8, 7, 77,88, 5,56,9 594, 8,59,,8, 69,66,9 FEDERALLY ADMINISTRATED NORTHERN AREAS (FANA) MicroSavings MicroInsurance 9 Astore Diamer Ghanche Ghizer Gilgit Skardu Total 5 4 5,6,7 5,85 6, 5,76, 5,6,57 7,785, 6,4,76 49,6,,, 5,7,99,888,698 9,86 5,7 6,465 6,984 9,5, 79,4,446 5,4, 45,75, 97,5,5 8,4,48,6,7 5,85 6, 5,76, 5,6,57 7,785, 6,4,76 49,6,,, 5,7,99 FEDERALLY ADMINISTRATED TRIBAL AREAS (FATA) MicroSavings MicroInsurance Bajaur Khyber Kurram Mohmand North Waziristan Orakzai South Waziristan ,99,67 4,545,997 8,55,979,6,565,89, , 67, 5, Total 5,54 9,587,77 7,7, 49, ISLAMABAD CAPITAL TERRITORY (ICT) MicroSavings MicroInsurance Islamabad 4,5 67,986,75,59 6,759,65,4 9,,55 74,75 4

15 MicroWATCH OUTREACH (ALL PAKISTAN) Province Offices MicroSavings MicroInsurance Penetration Rate (%) Fixed Mobile Balochistan 5 N.W.F.P 66 Punjab,9 Sindh 9 4 AJK 6 FANA 5 FATA 5 ICT Active Borrowers,7 5,764,79,6 7,99,54,,54 4,5 Gross Loan Portfolio 6,65,5,544,55,56 4,956,44,46 4,4,76,75 4,578,9 5,7,99 9,587,77 67,986,75 4, 9,65,5,97 457,9,8 6,984,59 4,9,6 6,98,5,58,74,697,48,78,5 44,,496 8,4,48 6,759,65 Policy Holders 5,8 5,58,467,874 8,55,4, 7,4 76,68,87 4,5,9,45 5,79,94,58,75,57,8 69,66,9 5,7,99,7, 9,,55,656,76 4,8,87 5,,94 6,57,795 74, Grand Total,588 6,87,58,47,5,8,857,77 4,96,79,,98,89 4,89,44,9 7,47, OTHER NEWS ITEMS Telenor Pakistan acquires Tameer Bank Telenor Pakistan entered into an agreement to acquire 5 percent shares in Tameer Bank on st November 8. The acquisition took place through a direct rights issue, for a Foreign Direct Investment (FDI) of USD.5 million (PKR billion approximately). The proceeds from the rights issue will be used to finance further development of the bank. However, the transaction is subject to full regulatory approval. Telenor Pakistan is a percent subsidiary of Telenor Group and a leading mobile operator in Pakistan with more than 8 million subscribers. Jon Eddy Abdullah, CEO of Telenor Pakistan said that the acquisition of 5 percent shares in Tameer Bank was a part of their strategy to offer financial services in Pakistan. Nadeem Hussain, President and CEO of Tameer Bank further commented on the deal and said "We are pleased with the deal we have entered. Telenor is a solid partner for further growth, and we have a common view about how financial and telecommunication sectors together can improve customer offerings by combining services". SAFWCO's Client wins Best MicroEntrepreneur Award Ms. Sahabzadi, a 4 year old physically disabled client of Sindh Agricultural and Forestry Workers Coordinating Organization (SAFWCO), was declared the Best Female Entrepreneur at the 5th CitiPPAF Microentrepreneurship Awards 8. This award is the 7th in such categories to be awarded to SAFWCO clients over the last 4 years. Ms. Sahabzadi was awarded a cash price along with a special award for her recovery from severe hardships. The awards were distributed by Shaukat Tarin, Advisor to Prime Minister on Finance, Revenue, Statistics and Economic Affairs at a ceremony held in Islamabad on st December 8. Managed by Citibank (Citi) and the Pakistan Poverty Alleviation Fund, the objective of the CitiPPAF Microentrepreneurship Awards programme is to illustrate and promote the effective role that microfinance plays in poverty alleviation around the world. The programme seeks to generate recognition for extraordinary contributions that individual microentrepreneurs have made to economic sustainability of their families as well as their communities in 7 countries across the globe. Kashf Bank commences Operations Kashf Bank Limited (KMBL) commenced its operations in Lahore on nd December 8 with the inauguration of its first branch in Dharampura. Governor of the State Bank of Pakistan presided over the occasion. After the opening of the Branch, she addressed a gathering of eminent citizens, leaders of the social sector organizations and senior executives from the financial sector. KMBL's vision is to demonstrate a microfinance model that relies on locally mobilized depositors, thus ensuring long term access to financial services to low income communities. Over the next 5 years, KMBL intends to reach out to million depositors and 45, entrepreneurs, through a network of over branches across Pakistan. The branch network will be supplemented by service posts closer to low income communities to make financial services available to the majority of unbanked population of Pakistan and ensure deeper penetration of financial services in the country. 5

16 END NOTES Chagai district was divided into two districts (Nushki and Chagai) in 5. The potential microfinance market estimate for Chagai is therefore an overestimation (aggregate of potential markets for Nushki and Chagai). Population data for Nushki district is not available. Nushki was carved out of Chagai district in 5. Thus, the potential microfinance market estimate for Chagai is an aggregate of the potential market for Chagai and Nushki. Population data for Sherani district is not available, Sherani was carved out of Zhob district in 5 4 Zhob was divided into two districts (Zhob and Sherani) in 5, The potential microfinance market estimate for Zhob is therefore an overestimation (aggregate of potential markets for Zhob and Sherani). 5 Population data for Mingora district is not available. Mingora was carved out of Swat district in 5. Thus, the potential microfinance market estimate for the district of Swat is an aggregate of the potential market for Mingora and Swat. 6 Swat district was divided into two districts (Swat and Mingora) in 5. The potential market estimate for Swat is therefore an overestimation (aggregate of potential markets for Mingora and Swat). The estimate is based on 998 DCR population data available for Swat. 7 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. 8 Population data for the district of Nankana Sahib is not available. The district was carved out of Sheikhupura district in 5. Thus, the estimate for the district of Sheikhupura is an aggregate of the potential market for Sheikhupura and Nankana Sahib (based on 998 DCR population data available for Sheikhupura). 9 does not provide retail microcredit services in Rawalpindi. It wholesales funds to a partner organization: Alfalah Development Organization. does not provide retail microcredit services in Dadu. It wholesales funds to a partner organization: Soofi Shah Inayat Shaheed Sanghat. Hyderabad district was divided into four districts in 6. 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 998 DCR population data available for Hyderabad). Population data for Jamshoro district is not available. The district is new and was carved out of Dadu district in 6. Thus, the estimate for Dadu also includes the estimate for the recently created Jamshoro district. The market estimate for Karachi is the aggregate of four districts namely, Central, West, East, and South. 4 does not provide retail microcredit services in Khairpur. It wholesales funds to partner organizations: Khaiji Cooperative Society, Goth Seenghar, and Marvi Rural Development Organization. 5 Population data for Matyari district is not available. The district was carved out of Hyderabad district in 6. Thus, the estimate for Hyderabad also includes the estimate for the recently created Matyari district. 6 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. 7 Population data for districts Tando Allahyar and Tando Muhammad Khan is not available. The districts were carved out of Hyderabad district in 6. 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. 8 Due to unavailability of population data for the Azad Jammu and Kashmir (AJK) districts, the potential microfinance market could not be estimated. 9 Due to unavailability of population data for the Federally Administered Northern Areas (FANA) the potential microfinance market could not be estimated. Due to unavailability of population data for the Federally Administered Tribal Areas (FATA), the potential microfinance market could not be estimated. provides insurance services to every individual in its credit portfolio as well as their respective spouses. The insurance figures for in the last quarter, however, only reported the borrowers themselves and not their spouses, which significantly underrepresented their total number of policy holders. previously reported data during the period instead of at the as the ending date of quarter. This quarter shows the figures for as at September th 8. REPORTING ORGANIZATIONS Category MFB Khushhali Bank () Bank licensed and Network MicroFinance Bank Ltd. (NMFB) prudentially regulated by the State Bank PakOman Bank Ltd. () of Pakistan to exclusively service Rozgar Bank Ltd. (RMFB) microfinance market Tameer Bank Ltd. () The First MicroFinanceBank Ltd. (FMFB) MFI Akhuwat institution providing Asasah specialized microfinance services Kashf Foundation Orangi Pilot Project () Sindh Agricultural and Forestry Workers Cooperative Organization (SAFWCO) RSP Lachi Poverty Reduction Project (LPRP) Rural support programme running National Rural Support Programme () microfinance operation as part of multidimensional rural development Punjab Rural Support Programme () Sarhad Rural Support Programme (SRSP) programme Thardeep Rural Development Programme (TRDP) NGO Centre for Women Cooperative Development (CWCD) Nongovernment organization running Community Support Concern (CSC) microfinance operations as part of multidimensional developed programme Development Action for Mobilization and Emancipation (DAMEN) Jinnah Welfare Society (JWS) Narowal 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) Swabi Women s Welfare Society (SWWS) Taraqee Foundation (TF) CFI ORIX Leasing Pakistan Ltd. () Commercial financial institution Bank of Khyber (BOK) providing microfinance services as separate function Reporting Period Author: Maheen Saleem Farooqi Reviewed by: Aban Haq Data Collection and Compilation: Moazzam Iqbal Design & Layout: Pakistan Network Printed at Pangraphics Copyrights Dec 8 Pakistan Network Pakistan Network Secretariat Hs, Street 4, F /4, Islamabad, Pakistan Tel: +9 (5) 9, Fax: +9 (5) 9 info@pmn.org.pk