EU-funded PAIDAR programme: Financing set to go up to Rs4.2bn

Business Recorder reported that the second phase of the PAIDAR programme, which the European Union funds, will lift its financing from Rs200 million to Rs4.2 billion. The increase was disclosed at the 10th annual Microfinance Conference, called AMC-X, which the Pakistan Microfinance Network organised with UNIDO over two days. Under the same phase, the guarantee facility arranged with the National Credit Guarantee Company will extend to eight lenders, up from three.

The report adds that borrowers in Larkana, Badin, Thatta, Sujawal and Tharparkar will be reached, with women earmarked for at least 50 percent of the funds. The National Credit Guarantee Company will offer risk-sharing for small enterprise loans and guarantees on credit lines from banks and DFIs to microfinance institutions, backed by a €2 million grant. A separate Rs1 billion facility between PMIC and NRSP was also signed under the PRIME programme.

Sindh Chief Minister Syed Murad Ali Shah urged a move from basic access toward products suited to incomes, seasonal needs and risk profiles. Amir Khan, who chairs the PMN and leads HBL Microfinance Bank, said microfinance should be woven into the wider financial system rather than run separately. SBP Deputy Governor Saleem Ullah also called for customer-focused innovation and a shift from measuring access to meaningful inclusion.