Micro credit disbursement increased by 134 percent to Rs 2 billion during the second quarter of year 2005-06 as compared to the same period of 2004-05.
During the same period total beneficiaries increased by 116 percent to 165,000, of which 68.7 percent were male beneficiaries and 31.3 percent were female beneficiaries. Share of Khushali Bank in micro credit disbursement was 56.4 percent in Q2 FY05, which has been declined to 38.9 percent in Q2 FY06.
According to Poverty Reduction Strategy Progress Report for the Second Quarter of Year 2005-06, released by Finance Division here on Thursday, the decline in micro credit disbursement share of Khushali Bank is the result of increase in micro credit disbursement share of Pakistan Poverty Alleviation Fund (PPAF) to 60.5 percent in Q2 FY06, an increase of 18 percentage points from Q2 FY05.
Zarai Taraqiati Bank Limited (ZTBL) has the smallest share in credit disbursement, which declined from 1.2 percent in Q2 FY05 to 0.6 percent in Q2 FY06.
According to the report, credit disbursed through partner organisations of PPAF increased quite substantially by 234 percent to Rs 1.2 billion in Q2 FY06 as compared to Q2 FY05, average credit disbursement of PPAF stood at Rs 13,453 in Q2 FY06.
During the same period total beneficiaries increased by 227.6 percent to 909,000. Though number of male beneficiaries is 1.3 times more than the female beneficiaries in Q2 FY06, but growth in female credit beneficiaries is 250 percent more than male credit beneficiaries as compared to the same period in Q2 FY05.
PPAF extended its operation to two more districts during Q2 FY06, covering 81 districts of Pakistan during Q2 FY06.
Statistics revealed that non-budgetary transfers comprised of transfers from Zakat, Employees' Old-Age Benefit Institutions (EOBI) and micro credit. Non-budgetary transfers increased considerably by 47.3 percent to Rs 3.7 billion during Q2 FY06 compared to Q2 FY05. During the same period, number of beneficiaries increased by 119 percent to 569,000.
Amount of zakat disbursed during Q2 FY06 stood at Rs 922 million, witnessing a decline of 19 percent as compared to Q2 FY05; this decline in zakat disbursement is attributed to non-availability of data from Balochistan province. During the same period, total zakat beneficiaries increased by 3 percent to 405,000, of which 41 percent are female beneficiaries.
Disbursement through EOBI increased by 49 percent to Rs 730 million during Q2 FY06 over Q2 FY05. Out of total EOBI disbursement in Q2 FY06, 99 percent consisted of pension and remaining 1 percent consisted of grants.
Pakistan's economy has shown the strength to maintain the high economic growth momentum and absorb major shocks. Despite the tragic loss of life in the earthquake hit areas and surging international oil prices, the economy is expected to grow between 6.5 and 7 percent during 2005-06.
The excellent performance of the economy during the last 4-5 years has led to creation of additional job opportunities and reduction in unemployment and poverty.
The overall average annual growth rate of the economy over the previous four years was about 6 percent. This overall growth with exceptional performance of the agriculture sector during 2004-05 helped create incomes for the poor; thus beginning of a process to share this prosperity.
Expenditure data shows that the government's commitment to provide resources for pro-poor sectors continued during this period. PRSP budgetary expenditures grew by 33.2 percent to Rs 166 billion during the first half of FY06.
Because of the sustainability in high economic growth and continuity in pro-poor expenditures, around 5.5 million additional jobs were created during the last two years.
This resulted in reduction in the open unemployment rate from 7.7 percent in 2003-04 to 6.8 percent during the first quarter of 2005-06, according to the latest labour force survey.
The preliminary results of the 2004-05 Pakistan social and living standards measurement survey (PSLM) shows a considerable decline in overall poverty from 32.1 percent in 2000-01 to 25.4 percent in 2004-05 with rural poverty declining from 39 percent to 31.8 percent and urban poverty from 22.7 percent to 17.2 percent during the same period.
It is worth noting that with the completion of the CWIQ component of the 2004-05 PSLM Survey, which is representative at the district level, the monitoring of PRSP indicators has entered into a new phase. Although the district-level data are only partially available, full results are likely to help monitor the progress in PRSP indicators at the lower administrative levels.
These partial results show that few districts of the country have made a remarkable progress in primary school enrolment and also in reducing the gender gap. Some districts have been successful in providing full immunisation to almost all eligible children. These good practices need to be highlighted and replicated in other districts in order to put the country on the path of progress and prosperity.