6th October 2021: A Memorandum of Understanding (MoU) has been signed between National Bank of Pakistan (NBP) and Pakistan Microfinance Network (PMN) for collaboration between the two organizations to facilitate growth of the microfinance industry in Pakistan.
NBP is the largest commercial bank as far as lending to the microfinance sector is concerned and this MOU will enable it to further strengthen its linkage with this sector as well as lead to discovery of new business opportunities. NBP will be facilitating PMN members for its account related services as well as provision of credit facilities. On the other hand, PMN will facilitate linkage between NBP and its members to promote financial services as well as sharing of data & research, client awareness & financial literacy and information of mutual interest.
PMN is a national association for retail players in the microfinance industry and was established by industry practitioners in 1997. Over the years the nature and level of activities grew and currently the network strength stands at 44 microfinance providers including Microfinance Banks (regulated by SBP) and Non-Bank Microfinance Companies (regulated by SECP).
NBP is Pakistan’s largest public sector commercial bank and provides a diverse range of products and services through a vast foot print of over 1,500 branches throughout the country. The Bank is taking initiatives for increasing market penetration and growth in the priority sectors of the economy. The Inclusive Development Group (IDG) within NBP is leading these initiatives and is engaged in focusing on financial inclusion of underserved sectors that have significant business potential.