Micro finance field in Pakistan has grown steadily over the last two years. From 1.35 million clients in 2007, the number increased to 1.79 million in 2008 and by third quarter of 2009, it was 1.83 million. The Gross Loan Portfolio (GLP) grew from 12,750 (USD 196 million) million in 2007 to Rs.20,000 million (USD 256 million) in 2008 and by 3rd quarter of 2009 it stood at 21,396 million (USD 255 million). Women clients were marginally higher in number than men but the men held the higher portion of GLP. The five top MFIs held 83% of market share in terms of clientele and 78% of GLP. Khushali Bank and NRSP led the market with highest footprint, number of active borrowers and GLP. RSP’s share of market declined from 34% active clients in 2008 to 30% in 2009, while Micro Finance Banks’ (MFB) share of clients increased from 34% to 40%. NGO MFIs share also dropped from 27% to 25%. In Sanghar, Nawabshah, Mirpurkhas and Matyari, Safwco’s operation area, active clientele was marked as between 10,000 and 25,000 borrowers. Safwco’s clientele in 2008 was 20,097 , which increased to 21,283 by the end of 2009.
PPAF credit disbursements during 2007 was 6,228 million through 70 partners in 111 districts, and in 2008 it was 9075 million through 74 partners in 111 districts, In 2009, credit disbursement was 3570 m through 82 partners in 126 districts. Safwco disbursed 271 m in 2008 and 342.5 m in 2009 and more than 90% of this lending was through a PPAF credit line.
During the beginning of 2008, State Bank of Pakistan stopped MFIs from acquiring debt financing in foreign exchange at a mark-up but towards the end of 2009 allowed it. During 2008 and 2009, Safwco with the help of ACTED and BWTP (Banking with the Poor)/ Planet Finance reached out to international investors, and one of the major obstacles to obtaining funds was the State Bank of Pakistan’s regulation. The other two were the security conditions in Pakistan and Safwco’s own transition from NGO to a Non Profit Company.
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