Lahore (Muhammad Yasir) Pakistan Microfinance Investment Company Limited (PMIC) is a wholesale finance entity and an important pillar of National Financial Inclusion Strategy of Pakistan. PMIC focuses on promoting poverty alleviation initiatives through Microfinance Institutions and Banks (MFIs & MFBs) and improving employment and livelihood opportunities for marginalized segments in the country especially women and youth. Furthering its mission, PMIC has successfully closed its second advisory & arrangement mandate for Khushhali Micro Finance Bank Limited (KMBL). KMBL has issued unsecured, subordinated, privately placed, Tier II Term Finance Certificates of PKR 600 Mn, where entire amount is provided by PMIC. This financing facility aims to support growth in lending operations of KMBL and contribute towards bank’s additional Tier II Capital for strengthening Capital Requirement and Capital Adequacy Ratio (CAR) prescribed by SBP for Microfinance Banks. It also furthers PMIC’s mission to work with sector stakeholders to meet the unmet demand for microfinance in the country. The investor agreement was signed by Mr. Yasir Ashfaq, Chief Executive Officer PMIC and Mr. Ghalib Nishtar, President & Chief Executive Officer KMBL.
Speaking on the occasion, Mr. Yasir said, “This transaction is a continuation of PMIC’s efforts to channel liquidity to sector stakeholders with the overarching aim to meet the unmet demand for financial services through different financial instruments. Some of the institutions in the microfinance sector, especially after COVID19, require tier I and tier II capital; PMIC would work with such institutions to meet their demand. PMIC is currently working on Social Impact Fund, Challenge Fund and other initiatives that would help in meeting demand of the sector and reduce cost of delivery”.
Mr. Ghalib Nishtar President and Chief Executive Officer KMBL commented “This transaction will further strengthen our relationship with PMIC. The facility will help KMBL to enhance access to finance to women and youth in the country, support enterprises and job creation and enable KMBL to reach the underserved areas of the country. We aim to further extend our partnership with PMIC to strengthen efforts to benefit the underserved communities in the country and increase financial inclusion.” PMIC Pakistan Microfinance Investment Company Limited (PMIC) is registered as an Investment Finance Company under NBFCs regulations with Securities and Exchange Commission of Pakistan (SECP). It is setup jointly by, Pakistan Poverty Alleviation Fund (PPAF), The Foreign, Commonwealth & Development Office (FCDO) through Karandaaz Pakistan and the German Development Bank (KFW). As of Dec 2020, PMIC currently has a loan portfolio of PKR 23 billion in 65 districts of the country, which comprises of 81% women borrowers and 66% of the portfolio is deployed in the rural areas. The purpose of the Organization is to improve financial inclusion, employment and wellbeing of the poor by providing wholesale financing to the microfinance service providers in the country. Khushhali Microfinance Bank Founded in the year 2000, Khushhali Microfinance Bank Limited (formerly known as Khushhali bank Limited) was a part of the Government of Islamic Republic of Pakistan’s Poverty Reduction Strategy and its Microfinance Sector Development Program (MSDP). MSDP was developed with the facilitation of Asian Development Bank (ADB). With its headquarters based in Islamabad KMBL operates under the supervision of the SBP. The bank’s board comprises of nine members including leading commercial bankers, fund managers and microfinance experts from across the globe. The mandate remains to retail microfinance services and to act as a catalyst in stabilizing the country’s newly formed microfinance sector.