FINCA Results

Measuring Our Impact

Social Performance Management

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Pakistan

Pakistan is one of the most populous countries in the world, with 208 million inhabitants. Although it faces significant economic, governance and security challenges, Pakistan has made substantial progress in reducing poverty during the last two decades. Rapid urbanization and population growth, however, are putting a strain on the quality of life in urban areas, especially in terms of housing and clean water.

FINCA entered Pakistan in 2013 by purchasing Kashf Microfinance Bank, a fully-licensed financial institution with an extensive network of branches. In recent years, it has become one of the fastest-growing banks in the country, offering a full range of financial services. In 2017, FINCA was awarded Smart Certification, which recognizes the highest standards of ethical practice in banking. This commitment to the well-being of its clients extends to every area of service, including SimSim, a no-fee mobile banking platform that is the first of its kind in Pakistan.

Explore Pakistan Data ↓

Financial Inclusion

Pakistan:
Reaching the Financially Excluded

84% Adult population financially excluded
17,284 12% Female borrowers % #
1,414,927 Total FINCA clients FINCA Pakistan has more savers than any other subsidiary, and the highest ratio of savers to borrowers.
19,838 14% Borrowers in rural areas FINCA is in the midst of expanding its rural outreach, particularly through agricultural and livestock loans. % #
141,703 Total FINCA borrowers

Pakistan has one of the highest rates of financial exclusion to be found anywhere. Over 80 percent of adults are shut out from formal financial services. FINCA is expanding rapidly in the country to fill this gap.

When FINCA purchased Kashf Bank, most of its customers were located in densely-populated urban areas. Since then, ongoing expansion in agricultural and livestock loans is shifting this balance towards more rural communities. This trend will hopefully gather strength as FINCA Pakistan rolls-out its mobile banking platform.

Reaching women poses a challenge in Pakistan. reflecting social norms that constrain women's activities outside the home. As it grows and diversifies its client base, FINCA Pakistan will continue to experiment with strategies to overcome these barriers, including increasing its female staff and special efforts to enroll women in its mobile banking platform.

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Living Standards

Pakistan:
Quality of Life

48,179 34% Client homes without water Urbanization is putting even more strain on the water resources, especially in the rapidly-growing cities. % #
1,417 1% Client homes without electricity % #
100,609 71% Client homes without access to Internet At the time of the FCAT survey, most internet connections were fixed. Mobile broadband is growing in Pakistan and eventually replacing fixed connections. % #
12,753 9% Clients who don’t own their home While most FINCA clients own their homes, the urban housing situation in Pakistan is under pressure from rural-urban migration and rapid population growth. % #
56,971 40% Head of household with primary education or less % #

Virtually all of our borrowers in Pakistan enjoy electricity in their homes. This may change as FINCA acquires more rural customers. As we have observed in other FINCA locations, however, access to clean water is a problem. A third of our borrowers live in homes with no running water, which poses difficulties for sanitation and food preparation. The other, longer-term issue for our clients' quality of life is the high incidence of breadwinners who have less than a secondary education -- a problem that is not unique to FINCA customers This issue is equally common in neighboring Afghanistan, and it signals the difficulties that many of our clients face in improving their family's quality of life.

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Income & Employment

Pakistan:
Income & Employment

$3,255 22% Average annual profit FINCA’s borrowers earn $3,225 annually out of $16,978 in total sales. % #
2.7 Average # of employees per client enterprise
377,505 People employed in FINCA-funded enterprises
31,065 8% Employees hired due to FINCA loan % #
117,895 31% Wages paid above the poverty line % #
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Our borrowers in Pakistan earn an average profit of $3,225 annually, which is less than $10 a day. Even so, they maintain a high rate of employment in their businesses. Each FINCA-funded enterprise in Pakistan employs 2.7 people (including the owner), the second-highest in our network after Malawi.

Over half a million people currently work in the enterprises funded by FINCA. The net employment impact of FINCA's loans, however, is not particularly high -- about 8 percent, according to our borrowers. Job-creation among our Pakistani clients is highest in manufacturing and services. Because the profit margins are quite low, however, clients are unable to pay high salaries to their workers, two-thirds of whom are earning wages below the national poverty line.

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Women’s Empowerment

Pakistan:
Empowering Women

17,284 12% Female borrowers % #
15,260 11% Clients with female-headed household % #
13,127 9% Households with female as main earner % #
7,227 5.1% Businesses run by women % #
41,094 11% Women employed by enterprises The finding that many more men than women are employed by these enterprises reflects local norms which discourage women's work outside the home. Avg. #
18,120 5% Jobs created by women Women create a proportional share of jobs, indicating that they are not skewed towards any particular sector of activity. % #

Women's empowerment faces many hurdles in Pakistan. At present, FINCA's female borrowers, while few, present a very specific profile. They are mostly single parents running their own business. This profile may change as FINCA rolls-out new services, such as SimSim. These digital services could potentially reach a broader swath of un-banked women, providing them with practical tools to improve their family's financial circumstances.

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Clients’ Goals

Pakistan:
Attaining Business and Personal Goals

Goals Set By FINCA Borrowers
Goals Met By FINCA Borrowers
7,227 5% Start a business Most of FINCA's borrowers in Pakistan already own a business and are focused on expanding it. % #
100,893 71% Expand a business This is the highest rate within the FINCA Network, alongside Haiti % #
709 1% Invest in education % #
4,534 3% Improve their home % #
2,834 2% Buy an asset % #
5,668 4% Pay down debts % #
6,287 87% Start a business % #
91,308 91% Expand a business % #
0 0% Invest in education % #
4,108 91% Improve their home % #
2,692 95% Buy an asset % #
3,197 56% Pay down debts Those borrowers who have concerns related to paying off debts or covering unexpected expenses express slightly less certainty that they will be able to achieve those aspirations. % #

Our customers in Pakistan are firmly focused on growing their businesses. Almost 3 out of 4 borrowers cite this as their main goal -- more than anywhere else we've surveyed. About 14 percent of borrowers are using FINCA’s loans for routine activities and expenses, and did not cite a specific goal. Starting a business, paying down debts, and improving their homes are each mentioned by 5 percent or less of borrowers.

On the whole, FINCA's borrowers are very confident that the loan from FINCA is instrumental instrumental in achieving their goals. The percent of clients who have met (or expect to meet) their goal is highest for those whose objectives relate to business growth, buying an asset or improving their home.

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Business Activities and Profit

Pakistan:
Poverty, Economic Sectors, Jobs and Profits

FINCA Loan Sectors

43,837 31% Trade % #
42,162 30% Services % #
9,214 7% Manufacturing % #
16,334 12% Crops % #
30,156 21% Livestock % #

Most of the loans in Pakistan are for businesses in the trade, services, crops and livestock industries.

Profit and Profit/Sales Ratio by Sector

$3,636 14% Trade Profit/sales ratio Avg. profit
3,298 22% Services Profit/sales ratio Avg. profit
$4,130 16% Manufacturing Profit/sales ratio Avg. profit
$2,161 33% Crops Profit/sales ratio Avg. profit
$2,968 31% Livestock Profit/sales ratio Avg. profit

FINCA tracks the average annual profit in USD for our clients, as well as their average profit/sales ratio by sector. Across our borrowers the average annual profit is $3,255 USD. The average profit/sales ratio is 22.2%. The sectors that perform above average when it comes to profit/sales ratio are both crops and livestock.

Jobs by Sector Due to FINCA Loan

4,748 15% Trade % #
18918 61% Services % #
5,026 16% Manufacturing % #
838 3% Crops % #
1,535 5% Livestock % #

A total of 24,633 jobs have been created in Pakistan as a direct result of FINCA loans. Nearly 300,000 people are employed by the enterprises that FINCA has provided loans to.

The numbers found in this section represent the total number of jobs in each sector created as a direct result of a FINCA loan, each year. These numbers are also provided by sector as a percentage of the total jobs created in Pakistan directly resulting from FINCA loans.

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MESA Stories

Sultana Bibi, FINCA client in Pakistan

For the Love of Her Family

Sultana Bibi, the eldest sibling in her family, was determined to create a better life for her three younger siblings. Thanks to...
Read Sultana's Story

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