Training of the micro-finance borrowers is a must so that they could use the loan effectively. This was stated by Dr Ishrat Hussain, chairman, National Commission for Government Reforms (NCGR) and former State Bank governor and at Citi-PPAF Microentrepreneurship Awards - 2007, jointly organised by the Pakistan Poverty Alleviation Fund (PPAF) and the Citi, a philanthropic arm of the Citibank, here on Wednesday.
Since 2000 the PPAF has disbursed more than Rs 30 billion for various interventions through 70 partner organisations working in 27,000 villages and more than 66,000 communities in over 111 districts.
Its cumulative operational activities entails over 1.3 million micro-credit loans, over 14,000 infrastructure projects, 205,000 trained individuals, staff and communities, 91 health and education facilities as well as provision of funds for more than 113,000 housing units in the quake-affected areas.
Dr Ishrat said around 40 million people were living below the poverty line in Pakistan and they need immediate economic and social uplift, adding: "I want these people be given loans, but first, they should be trained regarding judicious utilisation of the borrowed money and repayment to their creditors." He said Bangladesh has swelled its network of micro-credit to 23 million people which started in 1980. "We are also moving with the same spirit and have resources, but are facing lack of human resource", he added.
It is not easy to expand the network of micro-credit without skilled and dedicated loan officers. They train and guide the people in an appropriate way to make their business venture a success with paying back their loans, he suggested. The government alone cannot contain poverty, he said, adding the private sector and the NGOs should also contribute their role with efforts towards eliminating poverty from the country.
PPAF Chief Executive Kamal Hyat said the prime objective of micro-credit is to help for the betterment of social as well as economic uplift of the underprivileged and deprived masses.
Citi Country Officer and Managing Director Zubyr Soomro said that the objective of the 2007 Citi-PPAF Microentreneurship awards program is to illustrate and promote the effective role that micro-finance plays in poverty alleviation around the world. The Citi Microentreneurship Awards is being held in 27 countries. It is an effort to raise awareness of micro-finance, particularly among microentrepreneurs, who could benefit from it.
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