Islamabad: Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb, underscored the necessity for innovative solutions to enhance financial inclusion during a recent meeting with the Pakistan Microfinance Investment Company (PMIC). The meeting, chaired by Aurangzeb, brought together PMIC’s leadership, including Chairman Naveed A. Khan and CEO Yasir Ashfaque, as well as representatives from Karandaaz Pakistan and PMIC’s sector development team.
According to a statement by Press Information Department, the PMIC team provided a comprehensive overview of the microfinance sector’s current landscape. They highlighted Pakistan’s lag in financial inclusion compared to regional counterparts like Bangladesh, India, and the Philippines. Despite a potential microcredit market of 41 million, only 7.4 million clients are served. The discussion covered a comparative analysis of Microfinance Institutions (MFIs) and Microfinance Banks (MFBs), noting the distinct focus of each on different community needs.
Key challenges were identified, including a dual regulatory framework for MFIs and MFBs, limited funding access, insufficient institutional capacity, and low ownership of National Financial Inclusion Strategy targets. The Finance Minister emphasized the need to address these issues with practical solutions and encouraged PMIC to propose innovative funding mechanisms.
The meeting concluded with a commitment to collaborate on enhancing financial services access, particularly for rural and underserved populations, in line with the National Financial Inclusion Strategy’s objectives.
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