Pakistan Microfi-nance Network (PMN) and Institute of Business Administr-ation (IBA) have signed Memorandum of Understanding (MoU) for launching academic linkages programmes at the business institute. The memorandum was signed by Dr Ishrat Hussain Dean IBA and Dr Rashid Bajwa Chairman PMN at IBA City Campus on Tuesday.
According to the agreement, PMN would share microfinance data and the opportunities with the students of business institute to inform them about new projects, internships and job vacancies at its member organisations. IBA would inform microfinance institutions about job applicants, new projects and allow the microfinance material for distribution and display in the campus.
Recognising the role of microfinance institutions, Dean IBA Dr Ishrat Hussain said "PMN's role as the information hub of the microfinance industry has been a key factor in establishing the credibility of the sector at international level." The collaboration between the two sectors would allow the industry to attract, retain and train quality human resource for microfinance within Pakistan, he added.
He announced specialised Executive MBA (EMBA) programme in Banking and Financial Services. The Banking and Financial Services EMBA Programme, other than core management subject, offers different specialisation fields, including microfinance. "The participants of the new programme would be able to choose microfinance and shine up expertise and skills in this specific area", he said.
A decade ago, there was no concept of micro-financing in the country and now it is showing highest growth across the globe where the number of borrowers have crossed from 1.5 billion, the dean said, adding that the central bank has accepted to regulate the micro-financing institutions for protection of the small investors.
He said regulation of micro-financing institutions by the SBP would encourage the small investors for more borrowing to expand their business. "The central bank, for regulating financing institutions, would issue licenses under tough conditions to maintain the creditability of micro-financers," the dean maintained.
Briefing the participants about the new venture, Chief Executive Officer (CEO) PMN Syed Mohsin Ahmed said the academic linkages initiative is the part of the network capacity building objective. "Since inception of the network, capacity building has remained the top priority of PMN's primary concerns, taking into account both the training and non-training needs of its members," he added.
Both organisations would encourage an exchange of dialogue and information by facilitating research forums and participating at lectures and conferences arranged by the other. The purpose of building linkages would draw quality human resource and build knowledge platforms through contributions from both partners. Highlighting the significance of PMN, he said the network is an association of 23 retail Microfinance Providers (MFPs).
Collectively, the Network represents approximately 95 percent of the microfinance market in the country and positioned to intervene in facilitator capacity for member microfinance institutions for the broader environment of stakeholders in the industry.
"To achieve an outreach of 3 million active clients by the year 2010, a target set by the government in 2007, there is an estimated need for about 900 personnel to be brought into the system for senior and middle management positions, Syed Mohsin Ahmed said, adding the gap could be shortened by attracting, retaining and training quality human resource for microfinance in the country."
He said PMN has three programmes, including capacity building programmes, internship programmes and employment programmes. According to capacity building programme, PMN follows an annual calendar of training programmes at national and international levels for its members and sponsor MFPs for exposure visits for senior and middle level mangers to see microfinance programmes in various part of the world.
"Under its capacity building arms, PMN would spearhead to assist for drawing quality human resource and build knowledge platforms through contributions of both practitioners and academic realms, the CEO said, adding the process would involve initiation and development of opportunities for collaboration with between microfinance service providers and academic institutions."
He said the internship programme would include annual admissions of students for internships with PMN member microfinance institutions. "The purpose of the programme is to familiarise the students with industry and its practices to cultivate their interest in microfinance sector", the CEO maintained.
He said employment programme would be used to identify positions for employment, identify applicants for such positions in collaboration with concerned academic institutions and facilitate the match between candidate demand and supply. The objective of this very programme is to draw the right people and the offer the trained manpower, increasing industry demand, to the MFPs, the CEO elaborated.