LAHORE, Dec 2: State Bank Governor Dr Shahmshad Akhtar has said that microfinance industry cannot achieve sustainability without commercialisation.

Inaugurating the first branch of the Kashf Microfinance Bank at Johar Town here on Tuesday, the SBP governor said resources for the microfinance would have to come from the public depositors instead of the philanthropists for achieving sustainability and competitive pricing of the capital for the poor.

She said the environment needed for raising capital through deposits had been created by the SBP through enforcement of prudential regulations. Innovation in management was now needed for meeting the target of 10 million clients because the credit for the poor was without collateral.

She said a few more microfinance banks that largely relied on deposit mobilisation instead of availing foreign microfinance credit facilities would be allowed to operate in near future.

Kashf Microfinance Bank CEO Roshanay Zafar said poverty was created in society by its institutions. The poor were poor because lack of access to the capital. The bank had been established for providing financial services exclusively to the poor women on the pattern of Grameen Bank of Bangladesh. She said the bank would target women from low income sections of society for deposit mobilisation by opening their accounts with only Rs500 on the basis of national identity cards. The bank intended to mobilise deposits of Rs5 billion by opening one million accounts in five years.

Opinion

Editorial

United stance
13 Nov, 2024

United stance

BEYOND rhetoric, unity is rare within the Muslim world. Yet it was reassuring to see Muslim states speak with one...
Unscheduled visit
13 Nov, 2024

Unscheduled visit

AN IMF mission is in Islamabad for unusual, early talks with the Pakistani authorities as the lender seems worried...
Bara’s businesswomen
13 Nov, 2024

Bara’s businesswomen

BARA tehsil, a region typically known for its security challenges and socioeconomic problems, can now boast the...
System failure
Updated 12 Nov, 2024

System failure

Relevant institutions often treat right to internet connectivity with the same disdain as they do civil and political rights.
Narrowing the gap
12 Nov, 2024

Narrowing the gap

PERHAPS a pat on the back is in order for the ECP. Together with Nadra, it has made visible efforts to reduce...
Back on their feet
12 Nov, 2024

Back on their feet

A STIRRING comeback in the series has ended Pakistan’s 22-year wait for victory against world champions Australia....