3m borrowers to benefit from Pak micro-credit facility
Sunday, 19 August 2007
ISLAMABAD, Aug 18 (APP): Prime Minister Shaukat Aziz yesterday said the government has envisaged extending the coverage and outreach of micro-finance facilities from the present one million to three million borrowers till 2010 as part of its poverty reduction strategy.
He was chairing a high level meeting which approved in principle the action plan on expanding the micro-credit facility to poor households here at prime minister's house.
The prime minister said the grassroots lending to the poor through bank credit would help them increase their income.
Micro-financing, he said, is the best way of reaching out the marginalised and the forgotten which can change their destinies as experienced in a number of developing countries.
He said this model is based on the strategy that poverty decreases by increasing the income.
The prime minister said the government is focusing on improving the standard of living of common man and added lack of resources is a major impediment in their efforts to have a better standard of living.
However, he said, micro credit facility is an effective enabler to generate economic activities, reduce poverty and improve living standards.
He expressed confidence this facility would provide them with opportunities to augment their income and move up the social ladder.
The prime minister said the government is promoting public-private partnership and encouraging them to come forward and involve themselves in organising micro-finance credits to the less-privileged sections of society.
The meeting approved in principle the action plan to create a micro-finance bank under the national rural support programme (NRSP). It was emphasised that NRSP's lending operations as a bank should be sustained through raising funds by attracting deposits for which the rural community in particular has to be mobilised.
The delivery cost could be reduced through efficiency while the staff, to be recruited, has to be committed with a mission to serve the poor.
He was chairing a high level meeting which approved in principle the action plan on expanding the micro-credit facility to poor households here at prime minister's house.
The prime minister said the grassroots lending to the poor through bank credit would help them increase their income.
Micro-financing, he said, is the best way of reaching out the marginalised and the forgotten which can change their destinies as experienced in a number of developing countries.
He said this model is based on the strategy that poverty decreases by increasing the income.
The prime minister said the government is focusing on improving the standard of living of common man and added lack of resources is a major impediment in their efforts to have a better standard of living.
However, he said, micro credit facility is an effective enabler to generate economic activities, reduce poverty and improve living standards.
He expressed confidence this facility would provide them with opportunities to augment their income and move up the social ladder.
The prime minister said the government is promoting public-private partnership and encouraging them to come forward and involve themselves in organising micro-finance credits to the less-privileged sections of society.
The meeting approved in principle the action plan to create a micro-finance bank under the national rural support programme (NRSP). It was emphasised that NRSP's lending operations as a bank should be sustained through raising funds by attracting deposits for which the rural community in particular has to be mobilised.
The delivery cost could be reduced through efficiency while the staff, to be recruited, has to be committed with a mission to serve the poor.