KARACHI  - State Bank of Pakistan Deputy Governor Saeed Ahmad has said that microfinance sector has witnessed remarkable growth during past few years.

He was speaking at the launching ceremony of Microfinance Corporate Governance Training Programme at a local hotel in Karachi.

Training programme launched by SBP in collaboration with the microfinance industry and Hikmah Consulting under umbrella of Financial Inclusion Programme (FIP) with the funding assistance of the UK Aid.”

The legal and regulatory framework of Pakistani microfinance was built on the strong foundations and strategic direction by State Bank’s leadership which is internationally acclaimed today.

Ahmad said that strengthening of governance structures of microfinance providers was critical to achieving scale and institutional development by addressing key challenges. He added that the sector had become complex and diversified, seeing new types of players such as telecom companies, insurance companies and commercial banks entering the market.

He said that the core objectives of a strong corporate governance structure should be on enhancing transparency; increasing oversight and strengthening controls while achieving sustainability and growth for greater financial inclusion.

He said that despite all these measures, a strong governance system could not be built if ownership was lacking on part of investors or management.