With the aim of promoting the sustainable growth of the nation’s microfinance sector, State Bank of Pakistan (SBP) has created the Microfinance Strategic Framework 2011-15. The plan is intended to foster pro-poor and sustainable development within the country.

Presently, nine Microfinance Banks (MFBs) are operating in Pakistan. SBP will continue developing the banking infrastructure, encouraging the use of successful global practices and providing the regulatory and supervisory mechanisms that enable these enterprises to develop viable business models, while also taking steps to promote their independence. According to SBP Governor Yaseen Anwar in his speech at the 5th Pakistan Microfinance Country Forum in Karachi, “The strategy’s effectiveness and success hinges on growth dynamism fundamentally coming from microfinance operators themselves. The SBP will continue to work with all stakeholders, in order to support this nascent industry, which is expected to be a key driver in expanding financial services to all over Pakistan.”

Pakistan has one of the lowest financial penetration levels in the world with 56 percent of the adult population totally excluded, and another 32 percent informally served. At present, microcredit reaches 2 million borrowers whereas the size of the target market is estimated to total 25 to 30 million.