PMIC to help alleviate poverty, ensure financial inclusion of poor segment of the society:Dar

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ISLAMABAD, Oct 27 (APP): Minister for Finance Senator Muhammad Ishaq Dar Thursday said that due to prudent economic policies of the government, macro economic stability has been achieved and now focus was on the sustainable economic growth for job creation and poverty alleviation in the country.
The Finance Minister stated this while addressing the chief guest at
the launching ceremony of Pakistan Microfinance Investment Company (PMFIC) here at Prime Minister’s Office.
The Pakistan Poverty Alleviation Fund (PPAF), the United Kingdom’s
Department for International Development (DFID) through Karandaaz and Germaneys development Bank (KFW) have signed a shareholder agreement for the establishment of the PMIC under which they would co-invest in PMIC.
The ceremony was addressed among others by Kazi Azmat Essa CEO PPAF, Chairman PMIC Zubair Smooro, Ambassador of Germenay to Pakistan, High Commissioner of UK to Pakistan, Thomas Drew, representatives of KFW and DFID.
The tripartite coalition would be based on the initial equity of investment of Rs 6 billion through contribution of 49 percent by PPAF,
37 percent by Karandaaz and 14 percent by KFW where PPAF is providing Rs 3000 million DFID Euro 15 million, and KFW Euro 7 million as initial contribution for this venture.
Speaking on the occasion Minister for Finance Ishaq Dar said that
establishment of PMIC would also help alleviate poverty, ensure financial inclusion to poor segment of the society and promote businesses and sustainable economic growth in the country.
He thanked PPAF, DFID , KFW for their support to Pakistan in the establishment of this joint venture for the prosperity of the country.
Ishaq Dar said that it was the priority of the government to ensure promote financial inclusion in order to access of financial institutions to the poor segment of the society.
He called upon the new entity to ensure soft terms loans to the people specially the poor segment of the society so that could be able to generate their own incomes for the prosperity of the country.
He added that government has already launched financial inclusion strategy in order to provide financial access to poor people specially the women in the country.
He also highlighted the steps taken by the government for social safety net to reach the poor under Benazir Income Support Programme (BISP).
The Finance Minister Minister said that due to economic reforms agenda of the present government the country has been put on the path of sustainable economic growth in the country.
Ishaq Dar also informed them that Pakistan has successfully completed the three-year IMF programe and completed its twelve levels.
He added in the past Pakistan was declared one or two tranche country.
He appreciated the role of PPAF in alleviation of poverty and support to its client across the country.
The speakers on the occasion appreciated Senator Muhammad Ishaq Dar for initiating sound economic polices and his role and support for the establishment of PMIC in the country.
They hoped this initiative would help achieve the target for the financial inclusion of 10 million people by 2020 besides helping job creation and alleviating poverty in the country.The Pakistan Microfinance Investment Company aims to use public funding to invest commercially in people and business on lower income.
Microfinance was the central to Pakistan National Financial Inclusion strategy (NFIS), launched in May 2015 and PMIC aims to help create new supply chain for microfinace services -where currently 4.2 million
people in the country were accessing microfinance services out of estimated potential market of 20.5 million.
PMIC would aim to fund the expansion of microfinace in Pakistan by providing financial services for people on low incomes who would otherwise have no access to banking and other financial services.
The financing would go through micro entrepreneurs and micro enterprises, and would aim at to drive business expansion which would aimed to increase employment and overall growth in Pakistan’s economy.
The Chairman of Pakistan Microfinance Investment Company Zubair Soomro speaking on the occasion said, “As market based wholesale funding institution for microfinace at the national level this was
first of its kind anywhere.
“We look for it to lead financial inclusion to encompass affordable housing, livelihood, energy and education finance. This is an opportunity for significant growth in access to finance in Pakistan,” he remarked.
The British High Commissioner to Pakistan Thomas Drew CMG said that hardworking people from across communities in Pakistan were being held back by not being able to get access to finance -which they would use to increase their income and build their businesses, but also to create jobs and build growth.
“This is an incredibly important initiative and I pay tribute to the Finance Minister and his team for their commitment,” he remarked.
The Ambassador of Federal Republic of Germany to Pakistan Ina Lepel said that micriofinace is an important catalyst for businesses, employment and jobs. Germany was glad to have
joined forces with our partners in order to foster the business potential of the people Pakistan , especially the youth , through better access to finance, he added.
“We are greatful to all those who have supported the creation of the PMIC which would help people with lower income to realize their ideas, establish their own businesses and contribute to pro-poor and inclusive growth in Pakistan,” the Ambassador said.
KFW Director for Afghanistan and Pakistan Olaf Zymelca elaborated how PMIC would play a vital role in improving access to microfinance for
productive people of Pakistan.