Khushhali Bank has allocated a substantial amount of Rs 12 billion for the disbursement of small loans to the persons aged between 18 and 40 years to their own business. According to bank sources, Khushhali Bank was presently pitched in the top 10 Asian Banks, which provides loans on easy terms loans ranging from Rs 1,000 to Rs 100,000.
Within the overall Micro-finance Sector Development Programme (MSDP) framework, Khushhali Bank is the leading micro-finance institution in Pakistan and since its establishment, the bank rapidly expanding its micro credit outreach and has well established its position as the largest micro-finance bank in the country in terms of its clients and portfolio.
The bank now serves nearly 250,000 clients, with cumulative disbursements of over rupees six billion through its branch network in 75 districts with high poverty incidence. The majority of clients are in rural areas (60 percent).
A study concluded by the ADB states that micro-finance hold promise for the millions of poor households in Pakistan and demonstrate that given a supportive regulatory environment. It is possible for commercial micro-finance banks to meet a double bottom line of simultaneously pursuing profits and a humanitarian social mission. Perhaps other countries can follow the path of Pakistan in promoting the development of a sustainable micro-finance sector that improves the welfare of the poor.
However, despite these successes, the micro-finance sector in Pakistan is still at an early stage of development and the current outreach of micro-finance services in the country is relatively low given the fact that nearly 25 percent of the country's population is living below the poverty line. Nearly six million Pakistani households are in potential need of this services.
Accordingly, the government of Pakistan envisages the launch of the second phase of the Micro-finance Sector Development Programme (MSDP) during the current year with the objective of facilitating further growth of a sustainable finance system to provide permanent and diversified services for rural economic growth and poverty alleviation.