The Asian Development Bank in its effort to make availability of credit to agriculture-related borrowers and small businesses easier has approved a loan worth USD 20 million. The receiver of this loan will be Khushhali Microfinance Bank (KMBL), which will provide easy access of credit to the general population.
In a statement issued here on Monday, Ms. Christine Engstrom, Director of ADB’s
Private Sector Financial Institutions Division reiterated that “Agriculture and small business are critical sectors in Pakistan’s economy as that play a significant role in job creation and poverty reduction’.
Further, she said that, “ADB’s assistance will help support KMBL’s goal to improve financial inclusion to these sectors through their extensive expertise and outreach to underserved population”
It was also mentioned that the ADB will help Pakistan’s largest Microfinance Bank, KMBL, to increase its reach and credit to micro, small and medium sized enterprises (MSMEs) from 5,700 to 30,000 by 2020.
In an effort to promote policies which are financial inclusive, 25% of the recipients of loan will be women. A training assistance program will also be inaugurated under a MSME training academy as well as investments will be made in Khushhali Microfinance Bank’s technological up gradation, according to the official statement.
Ghalib Nihstar, President of KMBL said that, “ADB’s support will deepen the market penetration of KMBL into the rural economy and enhance access to small businesses vital to economic growth and prosperity”. Commenting on KMBL efforts in the past he said that, “In the past 16 years, KMBL has led the way towards financial inclusion by offering loans and savings products tailored to the low income segment of the market, and empowering women entrepreneurs belonging to the marginalized communities by creating awareness and providing opportunities of financial access through its value propositions”.
KMBL has an operational network of 144 branches all across Pakistan and it boasts of the largest client base among microfinance banks in the country. He said that, at the year end of 2016, KMBL had more than 550,000 active borrowers and managed an advances portfolio of over 23 Billion Rs.
Asian Development Bank in Manila, which is celebrating its 50 years of development in the region, is dedicated to reduce poverty in Asia and the Pacific. ADB aims to attain these goals with financial inclusion, environmentally sustainable growth, and regional integration.
