Sustainability termed key to success

For the third phase of Kashf Foundation Sustainable Microfinance Services for Women Programme, UK's Department for International Development (DFID) would provide support up to £8.9 million over the next four years.
Yusaf Samiullah, Head of DFID Pakistan, announced this while addressing the launching ceremony of the third phase of Kashf Foundation Sustainable Microfinance Services for Women Programme, here on Thursday. Planning and Board Punjab Chairman Salman Ghani was the chief guest.
Yusaf maintained that the funds have been given to assist Kashf to develop its business model and expand Microfinance services within Punjab. "DFID has supported Kashf Foundation since 1999 at the tune of £3.2 million and over this period it has increased its client base from 3,800 to approximately 75,000 clients. Kashf is now the third largest and one of the few financially sustainable Microfinance institutions in Pakistan," he added.
According to him, impact assessments have shown significant increase in family income, spending on health and attendance in education from client families. Our support reflects DFID's confidence in Kashf; and in the next phase would help to increase its client base from 75,000 to 300,000 in four years.
For the first time, Kashf would also lend to male clients, offer individual loans and seek to develop leasing and other demand driven financial products. At the end of this phase Kashf would be in a position of financial self sustainability and with sufficient scale to invest to achieve organic growth.
"DFID have also recently approved £30 million-project 'The Punjab Devolved Social Services Programme" for four years to enhance delivery of social services within the province. Discussions are also ongoing to develop a resource management programme with the Government of Punjab.
This overall package represents a significant investment in Punjab by DFID and demonstrates our commitment to reducing poverty and vulnerability, strengthening the public and the private sector and our ongoing engagement as a 'partner in development' with the Government of Punjab," he added.
He observed that the recent data suggests that there are approximately half a million micro-finance clients in Pakistan and it is believed that this is approximately 5-10 percent of the potential market. "Therefore there is the need to scale up financial services to the poor and marginalised. There is also huge scope to use information technology (ATMs, points of sale, etc) to reduce transaction costs and improve service delivery," he added.
Salman Ghani lauded the services of Kashf and said that sustainability in any project was the key to the success of a project, which the Kashf has attained. He hinted at a possibility of a partnership with Kashf in future development projects.
Roshaneh Zafar, president of Kashf Foundation, said that the third phase of the Kashf programme would focus on increasing access and diversifying the financial services offered by the Foundation, to give the poor greater choice, flexibility and security. "The money would be spent during the period 2006-2009 and the objective of the new programme is to improve the livelihoods of 300,000 poor women and their families in central and southern Punjab".