Micro-credit outreach witnesses 22 % growth

ISLAMABAD, July 16 (APP): The micro-credit outreach domain in the country, continued to exhibit upward trend, has witnessed 22 percent growth during 2016.
The government, recognizing need to protect the poor and the vulnerable, has launched several social safety net programmes and one of them was micro-finance which is considered an important player in promoting financial inclusion agenda.
During the period, Gross Loan Portfolio registered a 47 per
cent growth while micro-savings, on the other hand, posted
considerable growth under active savers by 65 per cent and value of
savings by 88 per cent which is attributable to increase in m-wallet
accounts and taping higher ticket size.
Sources at Finance Division on Sunday said, micro-
insurance also remained positive whereas sum insured posted a hefty
growth of 85 per cent. This segment is primarily dominated by credit
life and health insurance.
It is mentioned here that microfinance industry is primarily
engaged in empowering marginalized section of society through
provision of credit and making them self-sufficient.
The sector has been serving people near poverty line by not
only providing credit products but also through savings, insurance,
and remittance services.
The continued growth in the sector is primarily attributed
to enabling environment, supportive policy and regulatory
environment, healthy industry infrastructure that includes
Microfinance Credit Information Bureau (MF-CIB), government backed
credit schemes, client protection initiatives, and innovations in
products and delivery channels brought in by the players.
The objective of the microfinance initiative is to provide
liquidity to microfinance providers in response to tighter
liquidity conditions. It is provided as a package through
microfinance banks, microfinance institutions, Rural Support
Programmes (RSPs), and others including Commercial Financial
Institutions (CFIs) and Non-Government Organizations (NGOs).