Islamabad: The Pakistan Microfinance Network (PMN) and the Ministry of Poverty Alleviation and Social Safety have initiated discussions to integrate financial inclusion with social protection in efforts to reduce poverty sustainably.

Syed Mohsin Ahmed, CEO of PMN, met with Federal Minister Syed Imran Ahmed Shah to explore potential collaborations. Ahmed provided an overview of the microfinance sector’s status, highlighting the presence of 12.1 million active borrowers, 11 million savers, and 7.4 million insurance policyholders nationwide. The sector has outstanding loans totaling PKR 598 billion, with PMN representing 48 microfinance institutions in Pakistan.

Minister Shah commended PMN’s work and emphasized the need to link financial services with social protection programs to empower marginalized groups toward self-reliance. He stressed the importance of evidence-based interventions, focusing on women and youth.

The meeting identified several collaboration areas, including integrating microfinance with government social safety programs like the Benazir Income Support Programme and Pakistan Bait-ul-Mal, enhancing microfinance institutions’ capacities, and expanding access to digital financial services.

Both parties recognized the value of PMN’s data and research in shaping government policies. They agreed to continue technical-level engagements to develop a framework for effective collaboration.

Minister Shah stated, “Our aim is to move beyond traditional aid and adopt a self-reliance-based model through effective partnerships that promote financial independence.”