Commerce Desk
KARACHI: Pakistan Businessmen and Intellectuals Forum President Mian Zahid Hussain has called for urgent reforms to strengthen microfinance, improve financial inclusion and promote employment-generating businesses, particularly among low-income communities, women and rural populations.
He said inadequate capital, unequal loan distribution and high markup rates were restricting the sector’s potential to support economic revival.
According to the Pakistan Economic Survey 2025-26, the microfinance industry’s gross loan portfolio reached Rs858.5 billion in December 2025, serving 13.39 million active borrowers through 4,145 branches. However, Mian Zahid highlighted significant disparities in sectoral and provincial lending. Agriculture received Rs276.25 billion in March 2026, while manufacturing secured only Rs4.08 billion. Punjab received Rs300.54 billion in loans, compared with Rs7.19 billion for Balochistan.
He also cited Rs48 billion in non-performing loans and a negative 1.2% capital adequacy ratio among microfinance banks.
Welcoming recent credit guarantee initiatives, he urged authorities to raise coverage for women, farmers and microbusinesses to 50%, reduce markup rates and prioritise productive lending over personal consumption.
