Enabling the poor: Pakistan ranks 3rd in favourable microfinance environment

According to the report Pakistan is considered to have one of the most enabling environments for microfinance. ILLUSTRATION: JAMAL KHURSHID

KARACHI: 

Pakistan has the third-best microfinance business environment in the world, according to The Economist Intelligence Unit’s analysis of the microfinance business environment in 55 countries.

In its recently released report titled “Global microscope on the microfinance business environment 2013,” the business information arm of The Economist Group puts Pakistan after Peru and Bolivia on the overall microfinance business environment ranking.

“Pakistan… is considered to have one of the most enabling environments for microfinance regionally and globally,” said the report, which ranks countries on the basis of two broad categories: Regulatory Framework and Practices, which examines regulatory and market-entry conditions; and Supporting Institutional Framework, which assesses business practices and client interaction.

Interestingly, Pakistan is nearly tied with Bolivia for the second position because the difference in their respective scores on the index is only 0.1 point.

“Pakistan is an extremely attractive microfinance market. We have a regulator (State Bank of Pakistan), which is ranked among the best in the world,” said Mohammad Mudassar Aqil, CEO of Kashf Microfinance Bank, one of Pakistan’s major microfinance banks, while speaking to The Express Tribune in an interview.

He said Pakistan has one of the most progressive sets of regulations for microfinance banking. “A fully functional credit bureau for microfinance banks with about 93% of the adult population of the country having a unique CNIC number is a great combination of all ingredients,” Aqil added. “What’s missing is the ability of the practitioners (of microfinance banking) to innovate. Now the onus is on us,” he observed.

Pakistan holds the third position in both ‘Regulatory Framework and Practices’, and ‘Supporting Institutional Framework’ categories. However, besides the two core categories, The Economist Intelligence Unit also adjusts each country’s score for political instability into the index.

Based on a complex scoring methodology, this category evaluates political shocks to the microfinance sector and general political stability. Pakistan performs rather poorly on this count, as it ranks 30 among the 55 economies when it comes to political stability.

The State Bank of Pakistan (SBP) tightened its prudential regulations that apply to microfinance banks by increasing minimum-capital requirements. It expanded the scope of potential microfinance clients in 2011 by raising the maximum income level for clients who can qualify for microloans.

While the regulator does not impose interest-rate caps, it does limit the size of loans.

The Economist Intelligence Unit says the launch of the Microfinance Credit Information Bureau (MF-CIB), which was rolled out in June 2012, has been a key development in microfinance business.

“The MF-CIB will be a positive registry (with information on all clients with an outstanding loan, rather than just defaulters) and will cover all types of players serving the industry,” it said.

The total number of active borrowers in Pakistan at the end of the last quarter of fiscal 2013 was 2.6 million, up 4% from the preceding quarter. The penetration rate of the microfinance banking sector has increased from 9.2% to 9.6% due to an increase in overall outreach, according to the latest data

Casillas: I could quit Real Madrid

Iker Casillas admits he will consider quitting Real Madrid in the January transfer window if he fails to usurp Diego Lopez as the club's first-choice goalkeeper.

The Spain international, who has not started a league fixture for Madrid since January, has struggled to secure his starting place ahead of Lopez this season, while the 32-year-old's hopes of playing in the World Cup next summer may also be in doubt.

Casillas, who joined the club as a nine-year-old and is contracted to Madrid until 2017, concedes he may have to call time on his lengthy spell in the Spanish capital as soon as January.

'If a player isn't in the action then he starts to think about making a decision,' Casillas told reporters.

'I’m human and I’m a footballer. I haven’t played for nine months now and it’s the same for me. I’m not a robot.

'Of course I want to stay here and win more titles with Real Madrid. I’ve been here since I was little, but there will come a day in which I have to take a decision.

'As of now my decision is to stay and fight, to struggle and play every day. If I wasn’t sure about it I would have told the president I wanted to leave in September.

'That being said, if in three months things haven’t changed and you ask me the same question, well maybe I’ll be thinking about leaving.'

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Khedira: Ozil departure weakened Madrid

Sami Khedira says Real Madrid are weaker following Mesut Ozil's departure to Arsenal.

The Germany star completed a €50 million (£42m) deadline-day move to the Premier League giants in August, and his national team colleague has now admitted los Blancos are suffering from the playmaker's switch.

'Many players lament the departure of Mesut Ozil, including me,' the 26-year-old told Kicker.

'Losing a player with the qualities of Mesut means a weakening. But we have many players in our ranks with great qualities.'

Khedira also took the time to criticise the Spanish media for not giving him the credit he feels he deserves for his performances during his time at the club.

'I'll never be a media favourite in Spain. Even before the season, they saw me on the bench or in the stands, and now I'm the scapegoat yet again.

'Even if I put up good performances, they get rated badly.

'I'm not a Spaniard, didn't cost a lot of money and I'm a scholar of Mourinho. It's a shame to get treated like that, but it doesn't make me unhappy.

'I don't care about being loved by the media, I just demand their respect, which is non-existent at the moment.

Neymar a long way away from Messi & Ronaldo’ – Deco

Barcelona legend Deco believes that Neymar is 'a long way away' from the level of Lionel Messi and Cristiano Ronaldo.

The 21-year-old attacker has yet to scale the heights expected of him as he continues to adapt to life in la Liga following his €57 million move from Santos in the summer, having netted just three times in 10 appearances so far this season.

But while acknowledging that Neymar has the ability to establish himself as one of the world's finest, Deco believes the youngster has a long road ahead of him.

'He has potential for it, for sure,' the former Brazil and Blaugrana midfielder told El Mundo Deportivo. 'But this is a long way away.

'Comparisons with Messi or Cristiano are easy because they have matured, but football is not only about quality - you also have to mature.'

Deco, who called time on his illustrous playing career in August, before being handed a one-year ban from the game for doping, went on to plead his innocence in the case.

'Fluminense do not have a great medical structure, unlike Barcelona or Chelsea,' the 36-year-old explained.

'That's why I got my own nutritionist and he sent my vitamins to a pharmacy for them to include vitamin supplements.

'These pharmacies also make medicine and my vitamins were accidentally contaminated. The contamination was small, but it led to a positive test for two banned substances.

'One is used as a diuretic and another is used to treat breast cancer, but contains anabolic steriods, which are useless in football.

'It annoys me, but deep down I do not care because I am already retired, unlike those who are still active.

'If this happens to a 25-year-old boy then his career could be over.'

Maradona: Balotelli one of four best players in the world

Diego Maradona says that AC Milan striker Mario Balotelli is one of the four best players in the world and should be left in peace to realise his full potential.

The legendary Argentine No.10 revealed that he has a real fondness for the Italy international, with whom he can empathise on account of the youngster's quirky sense of humour, not to mention his habit of creating controversy on and off the field.

'My first contact I had with Mario was a picture he sent me of him smoking cigar,' Maradona explained. 'I liked it - I laughed.

'I would like talk to Mario by ourselves, in a room, and I would explain him the bad experiences I had in football. People should leave Balotelli in peace.

'I think you should first look at what kind of player he is and a manager should judge him for what he is on the pitch.

'I like him. For me, there is [Lionel] Messi, Cristiano Ronaldo, Neymar and Balotelli.'

Maradona, of course, coached Messi at the 2010 World Cup, which ended in disappointment for both men, with the 52-year-old losing his job after Argentina's quarter-final exit, and the Barcelona star coming in for criticism after failing to score a single goal.

Maradona is, therefore, desperate for Messi to exact 'revenge' on his detractors by inspiring Argentina to glory in Brazil next summer.

'I am not disappointed by Messi in 2010,' the former World Cup winner said. 'If he had of scored the chances he missed we would be world champions. He was unlucky.

'But I hope that he can take his revenge in Brazil.'

Maradona is currently out of the game, having parted company with Al Wasl last year, and he explained that he is prepared to wait for his dream job.

'When Benitez will leave Napoli, I would like to replace him,' the Partenopei icon added

Muller agent dismisses Barcelona transfer talk

Thomas Muller's agent, Ludwig Kogl, has insisted that the Bayern Munich star has not held transfer talks with Barcelona.

A recent Punto Pelota report suggested that the Germany international travelled to the Catalan capital at the weekend to meet with Blaugrana representatives, but the 24-year-old's agent has stressed that there's no truth in the rumour.

'Thomas was definitely not in Barcelona on Sunday,' Kogl told AZ.

'There's no truth in this. There have not been any talks with Barcelona and we have not negotiated with them.'

Muller is a product of the Bayern youth academy and has developed into a key player at the Bundesliga champions since making his first team debut in 2008-09.

The attacker's current deal with the Bavarians runs until June 2017.

Averting damage: Kabul shares security plan for power, gas import

Afghanistan has shared its security plan and has taken local tribes into confidence. The Afghan government will provide jobs for the locals, who will also get a share in royalty and compensation for land. PHOTO: FILE

ISLAMABAD: 

Afghanistan has shared its security plan with Pakistan and other countries for safeguarding power transmission lines and a gas pipeline that will pass through its territory, saying it will engage local tribes to protect the infrastructure from militant attacks.

The plan comes as the countries participating in the Turkmenistan-Afghanistan-Pakistan-India (TAPI) gas pipeline and CASA-1000 power import projects are concerned about the security of the pipeline and transmission lines passing through war-torn Afghanistan because of the presence of Taliban, say officials who are aware of the developments.

Afghanistan has given assurances that it will ensure security of the infrastructure in its troubled parts.

“Afghanistan has shared its security plan and has taken local tribes into confidence. The Afghan government will provide jobs for the locals, who will also get a share in royalty and compensation for land,” an official said.

The government would also undertake social welfare schemes in the areas from where transmission lines would pass and tribal people would be assigned the security task, the official said.

Under CASA-1000, Tajikistan and Kyrgyzstan will supply about 1,300 megawatts of electricity, which will come through Afghanistan that will get 300MW, to Pakistan.

Citing an example, Afghan officials say they already have transmission lines coming from Tajikistan and to protect these they are following the same formula.

Tajikistan is supplying electricity to Kunduz area in Afghanistan through a double-circuit 110-kilovolt link.

The security cost has been included in the total project cost, which will be incurred on shielding the power transmission lines from sabotage.

TAPI pipeline

Like the power import project, the Afghan government will engage local people to protect TAPI gas pipeline by offering them job opportunities, compensation for land, royalty and launching social welfare projects for community development.

“Tribes close to the TAPI pipeline will get royalty, therefore, they will be responsible for the security of the pipeline,” the official said, adding TAPI Company would also be involved in implementing the security plan.

In the TAPI project, Turkmenistan will supply gas to three countries through a pipeline which will reach India after passing through Afghanistan and Pakistan.

On its part, the Pakistan government has also planned to engage local people, especially in Balochistan, to beef up security of the gas pipeline.

The government will also invest in local people, provide them jobs and launch social welfare schemes. It has discussed a plan to form a local security force which will be assigned the task of securing the pipeline