Country Overview

Microfinance is still relatively new to Pakistan, both in concept and practice, and therefore it has a less developed microfinance sector than its Asian peers. While the sector has grown significantly in the last 8 years, it still has huge to do to reach the massive low-income segment of the market. Until 2000, the main providers of microfinance in Pakistan were NGOs and government sponsored rural support networks. With few exceptions, these institutions are generally not specialized in microfinance, nor have they demonstrated financial sustainability. Despite growing interest (both state and commercial) in the MF sector, there is still a notable lack of penetration and efficiency in the Pakistani MFIs market. The newer institutions are growing rapidly, but total outreach of these organizations is still around 7% of the estimated 30 million poor households in Pakistan that has the right of access to microfinance services. Furthermore, Pakistani MFIs are comparatively less efficient than their Asian peers.


Population Demographics Microfinance Demographics
Total Population Below Poverty Line(%) Rural(%) Urban(%) Estimated # MF Clients Currently Served Served(%)
167 Millions 32.6% 64.10 35.90 30 Millions 2.2 Millions 7.33