ISLAMABAD: A meeting of FINCA Microfinance Bank with the Federal Minister for Finance and Revenue Shaukat Tarin was held at the Secretariat, Islamabad, on 4th November.
At the outset of the meeting, FINCA Impact Finance (FIF) Global CEO and President Andrée Simon, along with the board of directors of FINCA Microfinance Bank (the Bank), expressed pride regarding the volume and quality of the responsible financial services being provided by the Bank in Pakistan to low-income individuals.
Since 2013, FINCA Pakistan has provided PKR 131 billion ($1 billion USD) in loans resulting in an estimated 3 million jobs. Today, FINCA Pakistan serves 1.5 million Pakistanis with savings and loan services, the majority of whom are in rural areas. FINCA Pakistan employs more than 2,400 employees in 120 cities across Pakistan.
In his welcome remarks, Tarin said that the Bank is a key player in the country's microfinance industry, and he appreciates FIF's commitment to bringing international investment to Pakistan.
While providing a performance review of the Bank, Simon informed the minister that many of the low-income Pakistanis served by FINCA Pakistan were hit hard by the Covid-19 pandemic. According to internal Bank research, 88% of loan clients saw their incomes decrease or fully stop because of the pandemic, and 47% forced to reduce their number of daily meals. The downstream impact on Pakistan families in cities and agricultural areas is substantial.
"Our priority remains helping our customers in Pakistan and increasing both financial inclusion and financial health in emerging markets," said Ms. Simon. "We are committed to providing our customers with the support and resources they need the rebuild their businesses in service to local and regional economies. We look forward to continuing to work with the Government of Pakistan and the State Bank of Pakistan to increase the financial health and stability of vulnerable Pakistanis."
FINCA leaders also shared ideas for strengthening the microfinance sector in Pakistan in light of financial strain brought on by the global pandemic. Many low-income borrowers have struggled to pay back their loans on time due to pandemic-related economic challenges.
In his remarks, Tarin expressed appreciation for FINCA's achievements in empowering Pakistanis who lack access to traditional banking services and expressed the Government's resolve to support the microfinance sector in Pakistan.
Copyright Business Recorder, 2021
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