A Memorandum of Understanding (MOU) has been signed between the National Bank of Pakistan (NBP) and the Pakistan Microfinance Network (PMN) for collaboration between the two organizations to facilitate the growth of the microfinance industry in Pakistan.
NBP is the largest commercial bank as far as lending to the microfinance sector is concerned and this MOU will enable it to further strengthen its linkage with this sector as well as lead to the discovery of new business opportunities.
NBP will be facilitating PMN members for its account-related services as well as the provision of credit facilities. On the other hand, PMN will facilitate linkage between NBP and its members to promote financial services as well as sharing of data and research, client awareness and financial literacy, and information of mutual interest.
PMN is a national association for retail players in the microfinance industry and was established by industry practitioners in 1997. Over the years, the nature and level of activities grew and currently, the network strength stands at 44 microfinance providers including Microfinance Banks (regulated by SBP) and Non-Bank Microfinance Companies (regulated by SECP).
The Inclusive Development Group (IDG) within NBP is leading these initiatives and is engaged in focusing on the financial inclusion of underserved sectors that have significant business potential.