The Microfinance Opportunity in Pakistan

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The Microfinance Opportunityin Pakistan

• 1 November 2006

Gregory Chen ShoreBank International Ltd
Mehr Shah Pakistan Microfinance Network
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1. Sizing the Credit Market
Household Income and Expenditure Survey
2001 Stratification by Consumption Levels
Estimated Adult Population
Non-Poor 14.5
Transitory Non-Poor 25.1
Transitory Vulnerable 14.3
Transitory Poor 13.3
Chronic Poor 6.6
Extremely Poor 0.9
Centre for Research on Poverty Reduction and
Income Distribution (CRPRID) Household Income
and Expenditure Survey 2000 2001.
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1. Sizing the Credit Market
Total Market Size 10 Million Loan Balance Per
Client 30,000 (500) Advances
300 Billion (5 Billion) Interest
Rate 30 Annual Revenue 90 Billion
(1.5 Billion)
KIBOR 9
Informal Markets 100 1000
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2. Market Penetration To Date

• Active Borrowers Table

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2. Market Penetration - Projected
Sample of 3 High Growth Microfinance Providers
2010

1,549,498
510
2006

Borrowers 143,000
Loan Portfolio US Millions 30
Yield on Portfolio 35
- Operating Costs (30)
- Financing Costs (10)
Return on Assets (5)
Net US Millions (1.5)
30
(15)
(10)
5
25
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3. Seizing the Opportunity
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Seizing the Opportunity
MicrofinanceInstitutions
VISION
CommercialBanks
State BankofPakistan