Integrating financial inclusion into social protection discussed

Islamabad:CEO of the Pakistan Microfinance Network (PMN) Syed Mohsin Ahmad called upon Federal Minister for Poverty Alleviation and Social Safety Syed Imran Ahmed Shah here on Thursday. The meeting focused on integrating financial inclusion with social protection to effectively address sustainable poverty reduction.

During the discussion, Syed Mohsin presented an overview of the development and current landscape of the microfinance sector in Pakistan. He said that there were currently 12.1 million active borrowers, 11 million savers, and 7.4 million insurance policyholders across the country, with the total value of outstanding loans standing at Rs 598 billion.

The PMN chief highlighted PMN’s role as a representative body of 48 microfinance institutions across Pakistan, working on policy advocacy, capacity building, information sharing, and expanding access to quality financial services. The minister appreciated PMN’s efforts and emphasised the importance of linking financial services with social protection to empower vulnerable populations towards self-reliance.

He stressed the need for evidence-based and field-viable interventions, especially targeting women and youth. Key areas of potential collaboration discussed during the meeting included the integration of microfinance services with government-run social safety net programmes such as the Benazir Income Support Programme and Pakistan Bait-ul-Mal, strengthening of the capacity of microfinance institutions, particularly through training and effective risk management, and research collaboration and data sharing to better understand poverty trends and enable informed policymaking. Also came under discussion was expansion of access to financial services through digital technology and improving mechanisms to monitor their impact.

The minister highlighted the importance of the PMN’s data and research systems in supporting the improvement of government policies. Both parties expressed strong interest in enhancing mutual cooperation and agreed to maintain engagement at the technical level to outline a framework for effective partnership. The minister said, “Our aim is to move beyond traditional aid and adopt a self-reliance-based model through effective partnerships that promoted financial independence. "Collaborating with institutions like the Pakistan Microfinance Network will enable us to achieve broader and more sustainable impact,” he said.