Islamic Republic of Pakistan: Improving Access to Financial Services- Main Report

This report discusses the progress made in the Improving Access to Financial Services Program Phase-1 (IAFSP). This reform program was undertaken by the Government of Pakistan in partnership with the Asian Development Bank. It presents findings on inclusive financial sector strategy, technology options, alternative financing, credit information bureau, gender, Islamic microfinance, and the legal and regulatory framework. A Technical Assistance (TA) Grant of USD 2.5 million supported the program. FINCON Services Inc., Canada was selected as the TA Team. IAFSP had a ten-pronged intervention strategy that includes:

• Public Private Partnership (PPP) among formal/informal and public/private entities engaged in financial services delivery;
• Reducing transaction costs by adopting innovative branchless microfinance operations;
• Credit Information System to increase financial transparency and operationally integrate features in the broader financial system;
• Islamic microfinance component;
• Carbon financing to benefit from international carbon credits and to adopt environmentally friendly microfinance loan products;
• Legal and regulatory reforms;
• Land record and revenue management system;
• Gender policies to support the growth of a microenterprise services for rural women;
• Financial services capacity building program to develop a human resource base.