Islamabad: Finance Minister Muhammad Aurangzeb has reiterated the government's commitment to accelerating financial inclusion as a cornerstone of sustainable economic development. He was speaking to a delegation of the Pakistan Microfinance Investment Company (PMIC), led by its Chairman Naveed A. Khan, during a meeting in Islamabad today.

According to Radio Pakistan, the PMIC team presented a detailed overview of the microfinance landscape, highlighting key challenges and opportunities. It was noted that Pakistan significantly lags behind regional counterparts like Bangladesh, India, and the Philippines in terms of financial inclusion. The potential microcredit market in Pakistan stands at 41 million, yet only 7.4 million clients are currently served.

The discussion included a comparative analysis of Microfinance Institutions and Microfinance Banks. The PMIC team emphasized that Microfinance Banks primarily lend against gold and offer nano loans, whereas Microfinance Institutions focus on rural communities and cater to underserved segments, particularly women.

The meeting outlined several key challenges to financial inclusion. Finance Minister Aurangzeb appreciated the insights shared and stressed the importance of addressing these challenges with realistic and practical solutions. He encouraged PMIC to propose innovative funding mechanisms, such as equity endowment funds and targeted government-mandated allocations, to increase the sector's capacity and outreach.

The meeting concluded with a shared resolve to work collaboratively towards enhancing access to financial services, especially for rural and underserved populations, in alignment with the National Financial Inclusion Strategy (NFIS) goals. The delegation included CEO PMIC Yasir Ashfaque, CEO Karandaaz Pakistan Waqas ul Hassan, and Head of Portfolio and Sector Development PMIC Saqib Siddique.