Microcredit. Active 31,128 2

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1 MicroWATCH A QUARTERLY UPDATE ON MICROFINANCE OUTREACH IN PAKISTAN ISSUE 12: QUARTERR 2 (APRJUN 29) Microcredit growth doubled compared to previous quarter s growth in terms of Microcredit MicroSavings MicroInsurance active borrowers, which grew by 2%, compared with 1% last quarter; and Value Value Policy Sum Insured also by gross loan portfolio (GLP), with Borrow ers (PKR Millions) Savers (PKR Millions) Holders ( PKR Millions) growth of 6%, compared with 3% for 29Q1 1,751,111 19,252 1,857, 737 5,882 2,3,289 31,232 last quarter. All top five microfinance 29Q2 1,782,239 2,319 2,153, 538 6,893 2,85,395 29,414 providers (s) in terms of net increase in active borrowers showed positive changes, in contrast to last quarter where only showed a net increase. remained the Increase (Net) Increase (%) 31, , , , , ,818 6 biggest contributorr (increasing its market share to 12.3%) for increase in number of borrowers, although the addition was slightly lesser compared to last quarter; followed closely. In terms of active borrowers, NRSP s market share went down from 26.3% to 24.1% although it remained market leader in terms of both active borrowers and GLP. Borrowers by Peer Group 2,5 2, 4% 5% 5% 5% In terms of peer groups, share in active borrowers continued to increase for 1,5 39% microfinance banks (MFBs), going up by 2% (to 38% %) with a corresponding 34% 33% 31% Others RSP decrease in share for rural support programs (RSPs), which went down to 1, 24% 27% 26% 26% MFI 31%. Shares for other peer groups remained the same as in the previous quarter. Market share in GLP increased by 2% (to 42%) for MFBs, and 5 MFB 33% 34% 36% 38% decreased 1% each for MFIs and RSPs. Growth in active borrowers was seen in Jafarabad and Nasirabad districts of Balochistan (34.1 and 3.8% respectively), after a half year period of decline. Penetration rates, however, remained between 1 and 2%. Rahimyar Khan in Punjab; and Karachi, Larkana and Naushahro Feroze in Sindh, 28Q3 28Q4 29Q1 29Q2 witnessed 5+ increases in net growth in active borrowers. No significant change was seen in other microcredit indicators: group lending remained Savers by Peer Group 2,5 dominant over individual; rural borrowers continued to be dominant over 4% urban, albeit with a 1% decrease for the former; and malefemale borrower 2, 4% 3% 4% ratio continued to favor female borrowers slightly, although in terms of GLP breakdowns by gender, males were found to be holding a larger chunk 1,5 Others (57%) of GLP compared with women. 81% 79% 1, 83% 82% RSP MFI In terms of savings, 5% growth was seen in number of savers, whereas 5 value of savings grew by a substantial 17%. added the most savers; and 2% 1% 1% 1% MFB added the most value. NRSP remained market leader in terms of 12% 13% 14% 16% number of active savers, albeit with a slight drop in share of 1.3%. Bahawalpur and Bahawalnagar witnessed huge variations in number of savers, due to data reconciliation and social mobilization project by NRSP between the two districts. In other microsavings indicators, urban/ /rural 28Q3 28Q4 29Q1 29Q2 breakdown showed an increase of 6% (from 4% to 1%) in urban savers (and a corresponding decline for rural); MFBs continued to hold the largest Policy Holders by Peer Group 2,5 value of savings among peer groups; and malefemale ratio continued to 2% 3% favor male savers. Although females constitute 33% of active savers, their 2, 4% 4% share in terms of value is only 13%. 41% 38% 35% 32% 1,5 Others For the third consecutive quarter, microinsurance continued to show a decline in both policy holders (down by 2%) and sum insured (down by 6%). 1, 31% 33% 33% 33% RSP MFI NRSP lost market leader position ( in terms of number of policy holders) to 5 MFB Kashf; similarly RSPs further lost share to MFBs in terms of sum insured. 26% 26% 28% 31% Bahawalpur saw an 18% decrease in policy holders, for the same reasons as those of decrease in active savers (above). Lahore was the only district to show an increase a minimal.3% %. 28Q3 28Q4 29Q1 29Q2 Borrowers ('s) Savers ('s) Policy Holders ('s) MicroWATCH is a publication of the Pakistan Microfinance 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).

2 2 * Geographical boundaries for new districts demarcated in 246 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 (APR 1 JUN 3, 29) MICROCREDIT A. Top 5 s: Increase in Borrowers (Net) B. Top 5 s: Increase in Borrowers (%) SDF NMFB TMFB JWS OPP RCDS PRSP TMFB Increase ( s) Increase (%) C. Largest Providers of Microcredit ( Borrowers) Borrowers (3 Jun) Market Share (% of Borrowers) 1 NRSP 429, , KASHF 288, , PRSP 81, D. Largest Providers of Microcredit (Gross Loan Portfolio) GLP (3 Jun) Market Share (% of GLP) 1 NRSP 4,97,7, ,722,74, ,54,23, KASHF 2,795,193, TMFB 1,28,585, E. s with Largest Geographic Spread NRSP KASHF PRSP Geographic Spread (No. of s) F. s with Highest Growth (Net) Province Borrowers (3 Jun) Grow th (1 Apr to 3 Jun) Potential Microfinance Market (27) Penetration Rate (%) A Net % B (A/B)*1 1 Jafarabad 1, , Balochistan Nasirabad 1, , Quetta 4, , Batgram 1, , N.W.F.P Mansehra 4, , Chitral 8, , Rahimyar Khan 39,852 6, , Punjab Gujranw ala 7,86 4, , Lahore 19,522 2, , Karachi 12,561 7, ,329, Sindh Larkana 16,952 5, , Naushahro Fero 18,75 5, , Muzaffarabad 9,457 1, AJK Bagh 3,513 1, Poonch 3, Skardu 5, FANA Ghanche 3, Ghizer 5, Orakzai 3,666 3, FATA Khyber Mohmand 32 (3) 1. 1 ICT Islamabad 2,793 (611) ,

4 MARKET HIGHLIGHTS (APR 1 JUN 3, 29) MICROSAVINGS A. Top 5 s: Increase in Savers (Net) B. Top 5 s: Increase in Value Savings (Net) NRSP TMFB TMFB NRSP NMFB TRDP Increase ( s) , Value (PKR Millions) C. Largest Providers of MicroSavings ( Savers) D. s with Highest Outreach ( Savers) Savers (3 Jun) Market Share (% of Savers) 1 NRSP 1,115, PRSP 328, TRDP 261, , TMFB 97,2 4.5 Savers (3 Jun) Increase (1 Apr to 3 Jun) Net % 1 Tharparkar 149,328 5, Bahawalpur 12,749 23, Bhawalnagar 85,145 32, Rawalpindi 79,31 13, Karachi 76,75 5, MICROINSURANCE A. Largest Providers of MicroInsurance (Policy Holders) B. s with Highest Outreach (Policy Holders) Policy Holders (3 Jun) Market Share (% of Policy Holders) 1 KASHF 577, NRSP 566, , , TRDP 16, Policy Holders (3 Jun) Increase (1 Apr to 3 Jun) Net % 1 Lahore 219, Bahawalpur 119,632 26, Faisalabad 9, Karachi 88,155 4, Gujranwala 83,366 3,

5 MicroWATCH SUMMARY OF MICROCREDIT PROVISION (All Pakistan) Exchange Rate (Jun 29): PKR/USD = 81.17/1 Lending Methodology Peer Group Total Group Individual MFB MFI RSP Others 29Q1 1, Q2 1, Borrowers 29Q1 1,751,111 1,597, , , , ,338 89,485 29Q2 1,782,239 1,623, , ,53 455,768 55,384 92,584 Gross Loan Portfolio (PKR Millions) 29Q1 19,252 16,737 2,516 7,671 4,289 5,965 1,327 29Q2 2,319 17,471 2,847 8,622 4,287 6,14 1,397 Average Loan Balance 29Q1 1,994 1,474 16,416 12,62 9,545 1,35 14,83 29Q2 11,41 1,762 17,934 12,614 9,46 1,926 15,84 Loans Disbursed 29Q1 395, ,77 52,664 19,22 54, ,758 23,127 29Q2 518, ,88 42, ,55 52,76 29,241 23,519 Disbursements (PKR Millions) 29Q1 5,67 4,475 1,195 3, , Q2 8,132 7, , , Average Loan Size 29Q1 14,339 13,56 22,692 16,476 12,315 11,671 16,292 29Q2 15,688 15,9 22,43 15,58 13,937 16,213 16,676 Gross Loan Portfolio 25, Gross Loan Portfolio by Methodology 25, Value (PKR Millions) 2, 15, 1, 5, 7% 7% 31% 3% 22% 21% 4% 42% Others RSP MFI MFB Value (PKR Millions) 2, 15, 1, 5, 13% 14% 87% 86% Individual Group 29Q1 29Q2 29Q1 29Q2 Borrowers by Gender Borrowers by Rural/Urban Borrowers ('s) 2, 1,8 1,6 1,4 1,2 1, % 52% 48% 48% Female Male Borrowers (s) 2, 1,8 1,6 1,4 1,2 1, % 56% 43% 44% Rural Urban 29Q1 29Q2 29Q1 29Q2 5

6 SUMMARY OF MICROCREDIT PROVISION (All Pakistan) Borrowers by Lending Methodology Distribution of Staff Borrowers ('s) 2, 1,8 1,6 1,4 1,2 1, % 9% 91% 91% Individual Group Staff 12, 1, 8, 6, 4, 2, 8% 8% 42% 3% 23% 22% 39% 28% Others RSP MFI MFB 29Q1 29Q2 29Q1 29Q2 Gross Loan Portfolio by Gender Borrowers by Sector Value (PKR Millions) 25, 2, 15, 1, 5, 43% 57% 29Q1 29Q2 Female Male Borrowers ('s) 2, 1,8 1,6 1,4 1,2 1, % 13% % % 7% 6% 9% 8% 31% 34% 16% 16% 26 27% 29Q1 29Q2 Other Housing Manufacturing/P roduction Services Trade Livestock/ Poultry Agriculture SUMMARY OF MICROSAVING PROVISION (All Pakistan) Saving Methodology Peer Group Total Intermediation Mobilization MFB MFI RSP Others Savers 29Q1 2,43, ,364 1,767,29 276,745 28,735 1,663,347 74,947 29Q2 2,153, ,433 1,812,15 341,433 3,77 1,74,865 77,163 Value of Saving (PKR Millions) 29Q1 5,882 4,619 1,263 4, , Q2 6,893 5,569 1,324 5, ,288 3 Average Saving Balance 29Q1 2,878 17, , Q2 3,21 16, , Saving Methodology: 1. 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. 2. Mobilization: s not regulated by SBP (MFIs, NGOs, RSPs) can neither hold nor intermediate deposits from the general public. These organization do however mobilize savings from their members/clients to place with licensed commercial banks. 6

7 MicroWATCH SUMMARY OF MICROSAVING PROVISION (All Pakistan) Value of Savings by Peer Group Savers by Gender Value (PKR Millions) 8, 7, 6, 5, 4, 3, 2, 1, 1% 21% % 78% % 19% % 81% Others RSP MFI MFB Savers ('s) 2,5 2, 1,5 1, 5 32% 33% 68% 67% Female Male 29Q1 29Q2 29Q1 29Q2 Value of Saving by Saving Methodology Savers by Urban/Rural 8, 2,5 Value (PKR Millions) 7, 6, 5, 4, 3, 2, 1, 21% 79% 19% 81% Mobilization Intermediation Savers ('s) 2, 1,5 1, 5 4% 1% 96% 9% Urban Rural 29Q1 29Q2 29Q1 29Q2 Value of Saving by Saving Gender Value (PKR Millions) 8, 7, 6, 5, 4, 3, 2, 1, 13% 87% 29Q1 29Q2 Female Male 7

8 SUMMARY OF MICROINSURANCE PROVISION (All Pakistan) Type Peer Group Total Health Life MFB MFI RSP Others Policy Holders 29Q1 2,128, ,442 1,377,51 6,447 73,14 751,442 73,464 29Q2 2,85, ,827 1,412, , ,86 672,827 77,566 Sum Insured (PKR Millions) 29Q1 31,232 6,994 3,627 19, Q2 29,414 7,985 3,518 17,9 93 Policy Holders by Type Policy Holders by Gender 68% % % 32% % Health Agriculture/Livestock Life Property Other Policy Holder ('s) 2,6 2,4 2,2 2, 1,8 1,6 1,4 1,2 1, % 59% 4% 41% 29Q1 29Q2 Female Male Policy Holders by Urban/Rural Sum Insured by Peer Group Policy Holder ('s) 2,6 2,4 2,2 2, 1,8 1,6 1,4 1,2 1, % 6% 39% 4% 29Q1 29Q2 Rural Urban Sum Insured (PKR Millions) 35, 3, 25, 2, 15, 1, 5, 3% 3% 63% 58% 12% 12% 22% 27% 29Q1 29Q2 Others RSP MFI MFB Sum Insured by Gender Sum Insured (PKR Millions) 35, 3, 25, 2, 15, 1, 5, 49% 51% 29Q1 29Q2 Female Male 8

9 MicroWATCH OUTREACH ( Level) BALOCHISTAN Fixed Mobile Borrowers Microcredit MicroSavings MicroInsurance Gross Loan Portfolio Savers Value of Savings Policy Holders Sum Insured Potential Microfinance Market Awaran Barkhan Bolan Chagai 2 26, ,453, ,453,324 31,881 66,423 54,814 Dera Bugti Gwadar Jafarabad Jhal Magsi Kalat Kech (Turbat) Kharan Khuzdar Kohlu 43,77,, NRSP, POMFB 5 1,858 11,456,434 9,48 2,561,56 2,5 32,868,46 55, ,915 24,144,71 1,915 24,144,71 121,911 29,887 53,884 NRSP 1 4 5,7 3,99 6,416, , 92,271 47,948 14,14 26,91 Lasbela Loralai Mastung Musakhel Nasirabad Nushki 3 Panjgur Pishin Qila Abdullah 84, ,881 11,33,354 1,881 11,33,354 76,879 41,317 27, ,291 15,19,829 1,291 15,19,829 75,783 51,74 1 1,216 9,8,692 1,216 9,8,692 1, ,112 Qila Saifullah Quetta 44,345,, OPP 6 4,643 28,289,23 2,462 7,731,987 4,587 27,826,58 174,437 Sherani 4 Sibi Washuk Zhob 5 1 1,828 12,72,627 1,828 12,72,627 48, ,23, ,23,21 53,848 Ziarat 7,268 Total 19 16,11 121,226,264 42,41 16,79,524 16, ,59,651 1,656,762 9

10 OUTREACH ( Level) NWFP Abbottabad Bannu Batgram Buner (Daggar) Charsadda Chitral D.I. Khan Hangu Haripur Karak Kohat Kohistan Lakki Marwat Lower Dir Malakand Mansehra Mardan Mingora 6 Nowshera Peshawar Shangla Swabi Swat 7 Tank Borrowers Microcredit MicroSavings MicroInsurance Gross Loan Portfolio Savers Value of Savings Policy Holders Sum Insured Potential Microfinance Market Fixed Mobile, SDF, SRSP 3 6,686 26,6,57 1,8 3,344,18 6,8 25,854,934 18, ,38, SDF 2 1,896 3,538,28 1,896 3,587,518 58, ,171 BRAC,, NRSP 3 13, ,429,868 9,665 1,168,21 5,254 41,195, , , ,563,581 17,512 35,257,299 8, ,563,581 84, ,741 52,674,478 4,741 52,674, ,328 64,648, SDF, SRSP 3 4,232 27,989,96 24,299 5,91,393 3,655 27,95,76 13,83 1 2,618 16,313,52 2,618 16,313,52 12,174, SRSP 2 4,1 22,83,23 3,71 2,393, , ,267, ,267,2 73,374 17,55 176,66, NRSP 1 9, ,95,935 16,795 2,812,874 7, ,652,857 16,429, POMFB, SDF 3 4,943 18,665,95 17,635 1,543,269 3,9 13,368,1 271,288, NRSP 36 23, ,111,6 22,82 6,676,273 18, ,815, , ,537 12,512,593 1,537 12,512,593 BRAC,, NRSP, SRSP 12 13,31 88,613,571 4,688 2,363,35 12,21 142,98,298 21,28 BRAC,, NRSP, SRSP 14 12,798 7,74,874 5, ,75 11, ,178, , , , ,366, NRSP 1 6,396 61,78,674 8,74 1,589,454 5,455 11,36,235 23,73 NRSP 3,55 34,69,71 4, ,87 286,555 62,446 Upper Dir 142,427 Total ,442 1,87,12,35 141, ,343,293 97,892 1,373,153,66 4,83,817 1

11 MicroWATCH OUTREACH ( Level) PUNJAB Attock Bahawalpur Bhakkar Bhawalnagar Chakwal D.G. Khan Faisalabad Gujranwala 8 Gujrat Hafizabad Jhang Jhelum Kasur Khanewal Khushab Lahore Leyyah Lodhran Mandi Bahauddin Mianwali Multan Muzaffargarh Nankana Sahib 9 Narowal Okara Pakpattan Rahimyar Khan Potential Microcredit MicroSavings MicroInsurance Microfinance Market Fixed Mobile Gross Loan Value of Savings Policy Sum Insured Borrowers Portfolio Savers Holders KASHF,, NRSP, POMFB 37 15, ,339,376 53,15 98,49,977 12, ,247, ,87, KASHF,, NRSP, TMFB 4 77,636 1,94,553,488 12, ,973, ,632 2,838,66, ,777, NRSP 25 15,88 155,292,228 57,318 27,949,55 38,31 1,57,243, ,453, NRSP 1 35, ,352,643 85,145 59,836,288 64,21 1,712,44, ,843, NRSP, POMFB 34 13,32 116,994,68 43,766 73,937,763 9, ,33,49 219,565,, NRSP, PRSP 15 26, ,972,373 6,952 96,177,23 36, ,418, ,252 AKHUWAT, ASASAH,, KASHF,, KMFB, NRSP, PRSP, RCDS, TMFB 8 97,41 849,724,581 56,78 41,677,297 9, ,425,52 1,96,924 ASASAH, CWCD,, JWS, KASHF,, KMFB, NRSP, OPD, OPP, PRSP, TMFB 5 7,86 886,149,442 15,738 4,873,65 83,366 72,677,49 735,741 AKHUWAT, KASHF,, KMFB, NRSP, PRSP, TMFB 12 15, ,5,598 17,33 9,6,74 18, ,692, ,63 KASHF,, PRSP 6 9,892 91,79,141 3,81 1,417,41 13,349 7,58, ,17 AKHUWAT,, KASHF,, KMFB, NRSP, PRSP 31 25, ,888,589 23,442 78,367,64 34, ,137,53 626,546, NRSP 25 11,744 18,129,697 17,88 17,282,26 8, ,582,738 17,498 ASASAH, CSC, CWCD, DAMEN,, KASHF,, KMFB, OLP, PRSP, RCDS, TMFB 3 57, ,233,248 9,667 28,114,559 68,921 56,147, ,427 AKHUWAT, ASASAH, KASHF,, NRSP, PRSP 15 26,32 3,97,15 15,682 23,422,31 42, ,863, ,948 KASHF,, NRSP, OPP 26 16, ,57,545 59,754 49,428,444 31,66 791,295, ,163 AKHUWAT, ASASAH, BRAC, CSC, CWCD, DAMEN,, KASHF,, KMFB, NRSP, OLP, OPP, PRSP, TMFB ,522 2,45,316,27 35, ,525,59 219,654 1,63,312, ,76,, PRSP 6 14,41 168,693,91 34,839 4,519,945 9, ,982,69 263,251 AKHUWAT,, KASHF,, NRSP 13 27,539 43,33,612 43,969 74,96,985 53,487 1,389,45,13 261,693 KASHF,, PRSP 6 8,74 74,616,585 2, ,698 7,287 45,882, ,371, NRSP 26 15, ,477,773 28,789 4,712,11 3, ,2, ,413 AKHUWAT, ASASAH, BRAC,, KASHF,, KMFB, NRSP, PRSP, TMFB 65 73,86 767,574,183 32, ,758,95 73,337 1,68,225, ,339, PRSP 3 7,336 81,23,277 3,15 4,793,272 5,386 68,91,879 57,58 CWCD, DAMEN, RCDS 9 8, ,2,375 7,859 4,891,9 28 1,851,375, PRSP 6 7,766 89,887,97 26,485 2,33,369 2,512 29,72,6 268,92 ASASAH, DAMEN,, KASHF,, OLP, PRSP, TMFB 13 24,246 28,488,33 14,822 34,352,763 24, ,841,446 59,842 ASASAH,, KASHF,, NRSP, PRSP 9 17, ,23,291 21,13 44,522,434 22, ,877, ,988, KASHF,, NRSP, TMFB 32 39, ,183,49 26,191 12,677,257 57,784 1,1,359, ,75 11

12 OUTREACH ( Level) PUNJAB Potential Microcredit MicroSavings MicroInsurance Microfinance Market Fixed Mobile Gross Loan Value of Savings Policy Sum Insured Borrowers Portfolio Savers Holders Rajanpur, NRSP, OPP, PRSP 13 25,319 37,37,394 49,464 52,836,75 36, ,939,457 26,436 AKHUWAT, BRAC,, KASHF,, KMFB, NRSP, OPP, POMFB Rawalpindi ,22 369,542,88 79,31 81,527,45 28, ,979, ,457 Sahiwal ASASAH, BRAC,, KASHF,, KMFB, NRSP, PRSP 25 38,672 42,451,298 21,712 29,15,663 49, ,842, ,468 Sargodha KASHF,, KMFB, NRSP, PRSP 42 35, ,993,511 43,752 44,37,671 45, ,338,27 671,679 Sheikhupura CWCD, DAMEN, KASHF,, OLP, PRSP, RCDS 24 3,8 387,93,561 34,87 7,33,918 29,63 213,318, ,522 Sialkot Toba Tek Singh KASHF,, KMFB, NRSP, PRSP 18 25, ,363,632 5,931 2,883,654 17,439 73,439,467 51,997 KASHF,, NRSP, PRSP 9 19,58 232,191,417 44,59 21,421,919 3, ,373,536 39,316 Vihari ASASAH,, KASHF,, NRSP 14 26, ,434,637 32,678 6,876,249 41, ,39,49 475,398 Total 977 1,199,978 13,65,788,699 1,24,26 1,776,453,128 1,456,77 21,76,358,456 15,233,924 SINDH Badin Dadu 11 Ghotki Hyderabad 12 Jacobabad Jamshoro 13 Karachi 14 Khairpur 15 Larkana Matyari 16 Mirpur Khas 17 Naushahro Feroze Nawabshah Sanghar Microcredit MicroSavings MicroInsurance Potential Microfinance Market Fixed Mobile Gross Loan Value of Savings Policy Sum Insured Borrowers Portfolio Savers Holders ASA,,, NRSP, POMFB 11 1, ,276,227 48,395 52,727,392 12,32 256,62, ,781,, OLP, OPP, TRDP 2 16,37 172,727,74 39,4 46,198,644 25,15 77,177,14 447,35,, OPP 4 13, ,888,875 8,286 23,413,437 12, ,998, ,442 ASA, BRAC,,, NRSP, OPP, POMFB, SAFWCO, TMFB 36 33, ,551,345 22, ,93,763 43,937 1,4,467, ,652, 4 11, ,8,276 3,264 83,419,23 11, ,8, ,146 TRDP ,285,14 13,69 8,195, ,72 ASA, BRAC,, KASHF,, NMFB, NRSP, OLP, OPP, POMFB, RMFB, TMFB ,561 1,32,563,697 76,75 2,398,78,4 88, ,664,19 1,329,99,, KMFB, OLP, OPP, TRDP 12 26,98 384,489,57 28,67 11,68,295 41, ,976,82 41,853, 6 16, ,511,893 5,923 51,927,335 16, ,511, ,891, NRSP, OPP, SAFWCO , ,594,455 7,142 11,37,77 15, ,586,728,, NRSP, POMFB, TMFB, TRDP 15 17, ,516,44 43,282 26,418,812 18, ,87,358 21,494,, OPP, SAFWCO ,75 221,265,982 1,29 18,416,74 14, ,414, ,462,, NRSP, OPP, TMFB 6 15, ,417,276 6,593 48,818,116 14,62 248,569, ,43,, OLP, OPP, SAFWCO , ,663, ,781, 21,865 99,848, ,133 12

13 MicroWATCH OUTREACH ( Level) SINDH Sehwan Sharif Fixed Mobile Borrowers Microcredit MicroSavings MicroInsurance Gross Loan Portfolio Savers Value of Savings Policy Holders Sum Insured Potential Microfinance Market 1 1,98 14,864,45 1,98 14,864,45 Shehdad Kot Shikarpur Sukkur Tando Allahyar 18 Tando Jam Tando Muhammad Khan Tharparkar Thatta 1 2,86 22,653,539 2,86 22,653, ,633 BRAC,,, OPP 1 13, ,512,41 2,12 38,43,615 13, ,858, ,8,, NRSP, POMFB 5 9, ,78,637 16,929 73,236,549 8, ,274, ,117 38,61,983 1,772 46,141,121 2,117 38,61,983,, NRSP, POMFB 6 7,85 114,212,681 9,51 47,521,139 9,43 24,883,41,, NRSP, TRDP 28 11, ,41, , ,375,843 4,287 59,12, ,491,, NRSP 9 6,917 69,438,922 15,67 62,695,71 7, ,338,51 245,46, OPP, TRDP Umer Kot 15 9,42 11,662,472 4, ,623,33 26,646 39,71, ,966 Total ,684 4,697,97, ,34 3,691,129, ,14 4,814,86,92 6,357,795 AZAD JAMMU AND KASHMIR (AJK) Bagh Borrowers Microcredit MicroSavings MicroInsurance Gross Loan Portfolio Savers Value of Savings Policy Holders Sum Insured Potential Microfinance Market 19 Fixed Mobile, NRSP, OPP 2 3,513 17,7,998 23,18 6,269,991 4,4 65,47,97 Bhimber Kotli NRSP 9 6,451 5,147,589 29,816 6,169,656 13, ,84, Mirpur Muzaffarabad,, NRSP, SDF 9 9,457 68,219,645 34,343 18,72,38 11, ,62,227 Neelum ,671, ,671,434 Poonch, NRSP 2 3,6 12,277,687 33,25 19,29,815 3,287 26,92,819 Sudhnati NRSP ,371,184 9,728 2,54,212 1,56 45,18, Total 25 23, ,758,537 13,2 52,424,54 35, ,126,577 13

14 OUTREACH ( Level) FEDERALLY ADMINISTRATED NORTHERN AREAS (FANA) Borrowers Microcredit MicroSavings MicroInsurance Gross Loan Portfolio Savers Value of Savings Policy Holders Sum Insured Potential Microfinance Market 2 Fixed Mobile Astore 1 1,94 42,335,98 2,261 19,514,3 1,94 42,335,98 Diamer Ghanche 2 3,53 74,833,978 4,182 85,622,13 3,53 74,833,978 Ghizer 5 5, ,353,44 12,58 111,596,23 5, ,353,44 Gilgit 4 5, ,176,357 17, ,371,711 5, ,176,357 Skardu 3 5, ,342,3 7,869 16,536,44 5, ,342,3 Total 15 21, ,41,65 44, ,64,784 21, ,41,65 FEDERALLY ADMINISTRATED TRIBAL AREAS (FATA) Bajaur Khyber Kurram Mohmand Fixed Mobile Borrowers Microcredit MicroSavings MicroInsurance Gross Loan Portfolio Savers Value of Savings Policy Holders Sum Insured Potential Microfinance Market , , ,748, ,748, ,977, ,977, ,717, ,717,78 North Waziristan Orakzai 1 3,666 34,959,397 3,666 34,959,397 South Waziristan Total 5 5,879 49,118,426 5,879 49,118,426 ISLAMABAD CAPITAL TERRITORY (ICT) Islamabad Microcredit MicroSavings MicroInsurance Potential Microfinance Market Gross Loan Value of Savings Policy Sum Insured Fixed Mobile Borrowers Portfolio Savers Holders, NRSP, POMFB 9 2,793 44,1,29 14,49 241,92, ,982,126 74,75 14

15 MicroWATCH OUTREACH (ALL PAKISTAN) Province Fixed Offices Mobile Borrowers Microcredit Gross Loan Portfolio Savers MicroSavings Value of Savings Policy Holders MicroInsurance Sum Insured Potential Penetration Rate Microfinance Market (%) Balochistan 19 16,11 121,226,264 42,41 16,79,524 16, ,59,651 1,656, N.W.F.P ,442 1,87,12,35 141, ,343,293 97,892 1,373,153,66 4,83, Punjab 977 1,199,978 13,65,788,699 1,24,26 1,776,453,128 1,456,77 21,76,358,456 15,233, Sind ,684 4,697,97, ,34 3,691,129, ,14 4,814,86,92 6,357, AJK 25 23, ,758,537 13,2 52,424,54 35, ,126,577 FANA 15 21, ,41,65 44, ,64,784 21, ,41,65 FATA 5 5,879 49,118,426 5,879 49,118,426 ICT 9 2,793 44,1,29 14,49 241,92, ,982,126 74, Grand Total 1, ,782,239 2,318,854,11 2,153,538 6,892,62,675 2,85,395 29,414,458,412 27,47, OTHER NEWS ITEMS SBP amends Prudential Regulations for MFBs The State Bank of Pakistan (SBP) has relaxed prudential regulations for microfinance banks, which will help foster microfinance services, in an attempt to remove regulatory bottlenecks raised by the industry in various interactions with the State Bank. Loan amounts, borrowers` annual income conditions, loan classification criteria are the focus of relaxation. In addition Credit Information Bureau (CIB) reports have been made compulsory for borrowers with specific exposure. A circular letter has been issued by the SBP in this regard. For a full version of the circular, visit SBP URL: World Bank approves $25m for PPAF Project In recognition of the performance of the Pakistan Poverty Alleviation Fund (PPAF), the World Bank has approved $25 million for a poverty reduction project, PPAFIII, for the next five years. The proposed PPAFIII project aims to alleviate poverty through a consolidation and saturation approach in targeted areas. Breakdown (into five major areas) for use of these funds is: Social Mobilisation and Institution Building ($38.5 million); Livelihood Enhancement and Protection ($85.5 million); Microcredit Access ($4 million); Basic Services and Infrastructure ($8 million); and Project Implementation Support ($6 million). Tameer Bank declared as Scheduled MFB The SBP has declared Tameer Micro Finance Bank Limited (TMFB) as a scheduled microfinance bank, under clause (a) of subsection (2) of Section 37 of the SBP Act, 1956, for the purpose of its direct membership of clearing house. TMFB is the first MFB to be granted scheduled status by the SBP. For more information on TMFB, please visit their URL: SBP to provide Rs 215m under ISF to Strengthen Microfinance Institutions The State Bank of Pakistan SBP has agreed to provide Rs 215 million under Institutional Strengthening Fund (ISF) to PMN and NRSP Microfinance Bank and has signed MoUs with the two institutions. Under the arrangement, the State Bank will provide Rs 133 million to PMN over the next five years to build its capacity to foster transparency and promote information exchange in the microfinance sector; and Rs 82 million to NRSP Microfinance Bank over one year to build capacity and develop a realtime Management Information System for developing capabilities to accept deposits from the lower end of the market. In addition, Rs 82 million have also been approved for Tameer Microfinance Bank for next one year, to launch branchless banking operations. The ISF is part of the GBP 5 million 'Financial Inclusion Program' (FIP) supported by DFID, and implemented by the SBP. It aims to transform the financial market with a clear objective to provide equitable and efficient marketbased financial services to the otherwise excluded poor and marginalized. Amendments in Microfinance Credit Guarantee Facility Further incentives/provisions have been created by the State Bank of Pakistan in its Microfinance Credit Guarantee Facility (MCGF) for commercial banks to provide wholesale funds to eligible s in addition to simplifying its guidelines for greater flexibility. Banks/DFIs will now have the option to provide funding to s with the existing 4 percent Partial (paripassu) Guarantee to cover the principal amount in default, or 25 percent First Loss Guarantee to cover up to 25 percent of the first loss on the principal amount. The applying for funding through this facility shall be assessed on a set of strategy/performance measures for eligibility. For a full version of the circular, visit SBP URL: 15

16 END NOTES 1 For the first time, genderwise breakdowns of the GLP, Value of Savings and Sum Insured are being included in the MicroWATCH. Thus, no respective preceding quarter data is available for comparison purposes. Similar breakdowns will be included in subsequent issues and trend analysis will hence be possible. 2 Chagai district was divided into two districts (Nushki and Chagai) in 25. 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 25. 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 Zhob was divided into two districts (Zhob and Sherani) in 25, 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 25. 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 25. 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 25. 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). 1 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 26. 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 26. 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 26. 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 26. 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. 2 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 Reporting Period Category MFB Kashf Microfinance Bank Microfinance Bank licensed and prudentially regulated by the State Bank of Pakistan to exclusively service microfinance market Khushhali Bank () Netw ork MicroFinance Bank Ltd. (NMFB) PakOman Microfinance Bank Ltd. (POMFB) Rozgar Microfinance Bank Ltd. (RMFB) Tameer Microfinance Bank Ltd. (TMFB) The First MicroFinanceBank Ltd. (FMFB) MFI Akhuw at Microfinance institution ASA International providing specialized Asasah microfinance services Community Support Concern (CSC) Development Action for Mobilization and Emancipation (DAMEN) Kashf Foundation Orangi Pilot Project (OPP) Sindh Agricultural and Forestry Workers Cooperative Organization (SAFWC RSP Lachi Poverty Reduction Project (LPRP) Rural support programme running microfinance operation as part of multidimensional National Rural Support Programme (NRSP) Punjab Rural Support Programme (PRSP) Sarhad Rural Support Programme (SRSP) Thardeep Rural Development Programme (TRDP) rural development programme Others BRAC Centre 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) Taraqee Foundation (TF) Bank of Khyber (BOK) ORIX Leasing Pakistan Ltd. (OLP) Author: Zahra Khalid Data Collection and Compilation: Moazzam Iqbal Design & Layout: Pakistan Microfinance Network Printed at: Creative Junction Copyrights Oct 29 Pakistan Microfinance Network Pakistan Microfinance Network Secretariat 132, St 4, F 1/4, Islamabad, Pakistan Tel: +92 (51) , Fax: +92 (51) info@pmn.org.pk 16