Banking

ADB Approves $20 Million Loan To Khushhali Microfinance Bank

Pakistan’s Khushhali Microfinance Bank Limited (KMBL) is planning to expand access to loans for small businesses and agriculture based debtors. For this purpose, the Asian Development Bank (ADB) has offered to assist the bank and has approved a $20 million loan.

Director of ADB’s Private Sector Financial Institutions Division, Christine Engstrom said that small business and agriculture sector play a vital role in reducing unemployment and poverty. These sectors highly contribute to Pakistan’s economy as well. Khushhali Microfinance Bank can achieve its goal to improve financial inclusion of these segments into the business cycle, with the help and support of ADB. ADB’s broad knowledge and outreach could assist KMBL’s purpose in areas that are neglected.

Also Read: Energy crisis in Punjab and KPK – ADB provides $325 million loan

Benefits through ADB’s assistance

ADB’s assistance will benefit the increasing number of micro, small and medium-sized enterprises (MSMEs) to attain easy loans from KMBL. Pakistan’s largest microfinance bank, KMBL’s financial services will increase from 5,700 to almost 30,000 till 2020. 25% of loan receivers are expected to be women. Investments made in KMBL’s “technology up gradation” programme will be executed under the support of a separate technical assistance programme. The technical programme will also assist in the creation of an MSME training academy.

Ghalib Nishtar, President KMBL said ADB’s assistance will help penetrate the market into the rural economy. It will further assist in being valuable to small businesses critical to the growth and enhancement of economy. In previous 16 years, KMBL has supported women entrepreneurs of backward areas and assisted financial inclusion by offering loans. In addition, KMBL has also provided various opportunities to small businesses and women entrepreneurs through its value propositions.

Also Read: Women entrepreneurs from Pakistan explore European Markets for trade

About Khushhali Microfinance Bank

There is still limited access to banking facilities in Pakistan. Only 25% of the adults hold a bank account, while MSMEs find it difficult to access financing from banking sector. KMBL has the largest base of customers among microfinance banks with a network of 144 branches in the country. Before 2017, there were over 550,000 active borrowers at KMBL. At that time KMBL’s gross loan portfolio crossed over Rs23 billion.

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