The United Nations Development Programme (UNDP) on Friday signed here a Memorandum of Understanding (MoU) with Orix Leasing Pakistan and First Microfinance Bank Limited (FMFB) to help poverty reduction by providing financial support to women in Pakistan.
The Women's Access to Capital and Technology (WACT) project is funding this venture, which commenced in early 2004 to target poverty by providing sustainable, accessible and pro-poor financial services to women.
"This renewed partnership will ensure increased and continued easily accessible credit for women in Pakistan," said Haoliang Xu, Country Director, UNDP. "We are confident that these initiatives will allow for further empowerment of women."
Through these partnerships approximately 10,000 women entrepreneurs in the rural and urban areas will be targeted and a loan disbursement of more than Rs 150 million is expected by the end of 2006, he said.
Through UNDP resources, ORIX Leasing Pakistan Limited will also launch its micro credit card. While utilising micro-credit card services poor women will be able to access quality financial services at their doorstep.
The First Microfinance Bank Ltd (FMFB) developed an aggressive growth plan for expanding outreach to women while maintaining an efficient loan portfolio for the poor working in the slums of urban areas and remote villages in rural areas. It reached out to small-business women entrepreneurs.
As its core strategic initiative, The FMFB in the second phase will develop and disseminate targeted financial education to micro entrepreneurs in rural and urban areas. It will further contribute to FMFB's strategy to alleviate poverty by strengthening the entrepreneurial base of the very poor.
FMFB will also document its best practices so that they may be replicated by other institutions. Certain case studies may be identified, which may later be provided for production and airing on the national TV for dissemination and sharing.