the SBP has been supporting a number of innovative pilots for adoption of financially inclusive G2P payments, covering the entire spectrum of G2P payments, including salaries, pensions and welfare payments. PHOTO: FILE
KARACHI:
The State Bank of Pakistan (SBP) announced on Friday the results of the second round of its Financial Innovation Challenge Fund (FICF) on Promoting Innovative Rural and Agricultural Finance under the UK’s Department for International Development (DFID)-funded Financial Inclusion Programme.
According to a press release, the FICF was launched by Finance Minister Ishaq Dar on March 6 as a strategic intervention for adopting innovations for the development of agricultural finance in the country.
The FICF Advisory Committee, which is chaired by SBP Deputy Governor Saeed Ahmad, draws its representation from SBP officials, Waqasul Hasan from DFID Pakistan and the private sector, including former Securities and Exchange Commission of Pakistan (SECP) chairman Shamim Ahmad Khan.
The committee held a series of meetings to evaluate 18 proposals received under the FICF Challenge. While evaluating these proposals based on well-defined criteria, such as uniqueness of the proposed innovations, sustainability of the ideas and potential for financial inclusion to establish value for money, the chairman appreciated response of the market and richness of innovations.
The committee approved 10 proposals for grant assistance under the FICF, committing a total of Rs240 million. The list of successful institutions includes Habib Bank, Faysal Bank, Ace Global Depository Pakistan, First Microfinance Bank, Agrow Limited, FINCA Microfinance Bank, NRSP Bank, Global Financial System, NRSP-MFI and the Bank of Khyber.
These successful institutions will implement their projects over the next six months by testing innovations, such as agriculture value chain financing, warehouse receipt financing against agricultural commodities, use of third-party service providers by the banks’ agri staff, green agricultural financing, Islamic microfinance, use of ICT solutions for agricultural finance and price information.
The FICF is a component of larger Financial Inclusion Programme (FIP) being implemented by the SBP under the funding assistance of UK Aid to spur innovative financial inclusion in Pakistan. The first round of the fund was held on Financially Inclusive Government to Person (G2P) Payments. Under the first round, the SBP has been supporting a number of innovative pilots for adoption of financially inclusive G2P payments, covering the entire spectrum of G2P payments, including salaries, pensions and welfare payments.
Published in The Express Tribune, May 24th, 2014.
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