'Microfinance must move beyond access'

The Pakistan Microfinance Network (PMN) concluded the 10th Annual Microfinance Conference (AMC-X) in Karachi, bringing together government officials, regulators, financial institutions, development partners and experts to shape the next phase of financial inclusion.

It was organised in collaboration with the United Nations Industrial Development Organisation (Unido) under the EU-funded Poverty Alleviation and Inclusive Development across Rural Sindh (PAIDAR) programme. Under the theme "Pathways for Inclusive Growth: Unlocking Synergies," discussions focused on moving beyond financial access towards client progression, resilience and measurable economic outcomes, particularly for women, farmers, microenterprises and underserved rural communities.

Addressing the conference virtually, Finance Minister Muhammad Aurangzeb placed financial inclusion within Pakistan's wider transition from macroeconomic stabilisation towards sustainable growth. He called for greater use of cash flow-based rather than collateral-based lending, digital credit tools and alternative data to bring more borrowers into formal finance, particularly in agriculture and SMEs.

"It's not just how much you lend, how many borrowers you have, but also start measuring outcomes," he said, highlighting borrower graduation, job creation and women's economic participation as important measures of success.

Opening the conference, Amir Khan, Chairman PMN and President & CEO, HBL Microfinance Bank, called for microfinance to be integrated into the wider financial system. "The principle behind everything to follow is to mainstream microfinance into the financial ecosystem, not as a parallel track," he said. Khan stressed that the sector's next decade should be judged not only by outreach but by whether clients were able to progress towards stronger businesses, assets and financial independence.