KARACHI: Karachi Chamber of Commerce & Industry (KCCI) President Anjum Nisar has said that micro financing is essential to promote small scale, low income entrepreneurs especially women, to alleviate poverty.
He expressed this while addressing the seventh meeting of KCCI Banking & Insurance Sub-Committee. He lamented that about 40 per cent of the population in rural & urban areas were living below the poverty line with a nominal income less than one dollar a day, adding that collective efforts were required to improve their living standard.
He appreciated the role of The First Microfinance Bank Limited, which was offering easy and flexible loans to low income segments of the society and women entrepreneurs. He emphasised on enlightening low income entrepreneurs about micro financing schemes and to encourage them to opt for microfinance banks for their deposits and making remittances to their families residing outstation.
The First Microfinance Bank Limited President & CEO Hussain Tejani, on the occasion, expressed gratitude towards KCCI and the business community of Karachi. He informed that the purpose of establishing The Microfinance Bank was to alleviate poverty by encouraging low income entrepreneurs.
On the suggestion of KCCI President, FMBL chief Hussain Tejani agreed to setup a coordination committee of KCCI & FMBL to accelerate micro financing activities in reaching the most poor and vulnerable people of the society.
He said FMBL aimed to reach out to the deprived low income entrepreneurs who were unable to receive adequate financial services throughout the country in the rural as well as urban areas. FMBL was offering loans on easy terms to the underprivileged and poor elements of the society, especially women, he added.
He said FMBL was established with the mission and vision to alleviate poverty with non-commercial objectives. Presently, 89 branches were operating countrywide in both urban and rural areas, offering a full array of services including loans, savings accounts, micro-insurance, fixed term deposits and remittances.
He said FMBL focused on providing financial services to women who were 40 per cent of the bank’s borrowers. With a vast majority of the poor residing in rural areas of Pakistan, over 70 per cent of the cumulative loan amount was disbursed in rural areas and the recovery rate was 99.5pc, he added.
The First Microfinance Bank Limited was the first microfinance bank of Pakistan, which was also ranked as 7th amongst the top 100 microfinance banks operating worldwide by World Bank, he noted.
Banking & Insurance Sub-Committee of KCCI Chairman Ateeq Ur Rehman stressed the need for micro financing in the cottage industry and among small traders. He called for financing for the local handicraft made by women entrepreneurs in their homes, a trend which was fading.
He termed micro financing as a form of social service which enabled the less privileged to avail a better standard of living. He urged the government to encourage establishing a network of micro financing banks from Karachi to Skardu. Since the poverty had become a menace, it was our prime responsibility to provide relief to the less privileged, he added.