1 / 18

Integrating The First MicroFinanceBank and Social Protection

Integrating The First MicroFinanceBank and Social Protection. Next Generation Access to Finance September 18, 2007 Washington DC. Structure of Presentation. Situation Analysis; Poverty in Pakistan State of social protection in Pakistan

tegan
Download Presentation

Integrating The First MicroFinanceBank and Social Protection

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Integrating The First MicroFinanceBank and Social Protection Next Generation Access to Finance September 18, 2007 Washington DC

  2. Structure of Presentation • Situation Analysis; • Poverty in Pakistan • State of social protection in Pakistan • Strategy for Improvement; Integrating The First MicroFinanceBank Ltd and Aga Khan Development Network

  3. Poverty in Pakistan Defined • Rural Poverty: 36% in 1998-99 (71% population in rural areas) • 56% of sample population – vulnerable • 75% of vulnerable are chronic poor • 42% of population in households with illiterate heads is poor • Literacy rate among poor is 28% (49%; non-poor) • Literacy in Poor rural women: 9% • Net primary level enrolment is 42% for poor (lowest for rural women) Source: World Bank Experience of AKDN

  4. Poverty in Pakistan Defined • Mother and Child Care • Infant and Child Mortality at 82 and 116 per 1000 • 41% of births unattended by trained professionals • Built Environment • 59% of poor live in houses with no toilets • 8% poor have access to underground drains Social Protection by The First MicroFinanceBank Ltd

  5. Situation Analysis Social Protection Funding • Zakat and Ushr • Employee Old Age Benefits Institution • Wheat Subsidy • Worker’s Welfare Funds • Khushal Pakistan • Social Action Program • Microfinance

  6. Comparative Analysis

  7. challenges with design

  8. The First MicroFinanceBank LtdNot a profit maximizing institution • Permanent Establishment; Bank • Corporate Objective: Poverty alleviation while covering inflation adjusted costs • Financial Transparency Awards for 2005 and 2006 • Non-executive board of directors • 20 years rural microfinance experience / 6 years MFB • Credit rating ST A1+ and MT A+ for 4 years • Year end 2007 branch network of 81 • Fully automated branch network

  9. The First MicroFinanceBank • Increased funding driven by credibility • Low administration cost given cross sell • Trained human resource to identify poorest • Network with Aga Khan Development Network and other agencies • Aga Khan Health Services • Aga Khan Education Services • Social Welfare institution for food security

  10. poverty as defined by The First MicroFinanceBank Ltd

  11. Identification by The First MicroFinanceBank Ltd

  12. identification mechanism

  13. client-fmfb-development agency nexus

  14. smart card technology • Client family data stored • Reduced leakage • Strong implementation of beneficiary exit strategy • Improved efficiency

  15. tailormade

  16. Exit Strategy for Poorest of Poor

  17. fund movement

  18. new structure • Institutional Credibility • In-built mechanism to filter non destitute • Classification of destitute • Permanent • Temporary • Temporary protection to latter group • Well defined exist strategy • Smart card technology

More Related