ISLAMABAD - In a major move, Pakistan Poverty Alleviation Fund (PPAF) has planned to extend 0.1 million micro loans to implement different schemes in next financial year starting from July 1, 2012.
Although micro credit has been the main thrust in the past, today microfinance encompasses a wide range of financial services such as credit, savings, insurance and remittances. Microfinance is a powerful instrument of anti poverty strategy as it is cost effective and sustainable, and also because donor money is recycled and reused to benefit many. It is relevant to mention here that the PPAF Rs 1b funded by multilateral and bilateral donors like WB, IFAD, KFW Financial Cooperation Germany, and US Department for Agriculture, Italian Government etc.
The funding provided to PPAF is dedicated for micro credit, enterprise development, community based infrastructure & energy projects, livelihood enhancement & protection, social mobilization and capacity building institutional assistance for the partner organizations of PPAF.