Pakistan Poverty Alleviation Fund (PPAF) and Microcredit Summit Campaign have collaborated to launch the global initiative of Seal of Excellence for poverty outreach and transformation in Pakistan, which will recognise those microfinance institutions doing the most to help poor households lift themselves out of poverty and improve their lives.
The International Fund for Agricultural Development (IFAD) has provided financial support for this exercise, which is also being replicated in Jordan, Bolivia, India, Senegal, Peru, South Africa and the Philippines. The overall goal of Seal of Excellence is to accredit microfinance institutions which are responsible, genuinely inclusive and contributing to positive change in the society. The accreditation of PPAF partners would result in a globally recognised stamp of quality assurance. It would ensure that the rights of micro-credit borrowers are protected, and microfinance institutions' focus remains on impact.
A ceremony to this effect was arranged on Friday here, which was participated by representatives of the State Bank of Pakistan, the World Bank, DFID, Pakistan Microfinance Network, commercial banks, PPAF partner organisations offering micro-credit services in Pakistan and others.
Addressing the occasion, Director, Infrastructure, Housing and SME Finance, SBP, Sammar Hasnain said there was no denying the fact that access to finances had a positive impact on economic growth as it promoted entrepreneurship, generated employment, fosters innovation, reduced poverty and enhanced social equality by providing services to the under-served. He said the microfinance sector needed to cater financing needs of low income and excluded groups, adding financial inclusion and financial literacy had progressively assumed greater priority in SBP's sector development strategy.
Senior Institutional Development Specialist and PPAF Task Team Leader at the World Bank Imtiaz Alvi said the provision of financial services to the poor and excluded groups were the part of the foundation to eradicate poverty.
PPAF, he said, being sector developer had played a pivotal role in shaping up the microfinance sector, adding that microfinance institutions needed to gear up their efforts to meet challenges and reach out 30 million prospective borrowers. He said PPAF remained at the cutting edge to provide leadership to emerging microfinance players, adding the World Bank was committed to help eradicate poverty and PPAF remained the partner of choice to achieve this goal.-PR