This initiative focuses on promoting financial inclusion for Female Home-Based Workers (FHBWs) in Pakistan, who operate largely in the informal economy. These women-led micro and small enterprises are typically unregistered, lack access to formal financial services, and face growth constraints, further exacerbated by COVID-19.

PMN is assisting Japan International Corporation Agency (JICA), HomeNet Pakistan, and HBL Microfinance Bank through its research and policy advocacy functions. PMN is enabling the partners to understand the financial inclusion potential of FHBWs, tailor products and services for them, and lead policy dialogues to foster reforms for broader financial inclusion in the sector. It is also contributing to capacity building for FHBWs, enabling them to become catalysts for change and economic growth.

Pakistan Microfinance Network (PMN), in collaboration with Oxfam Novib and Triple Jump, led a project focused on disaster resilience, insurance, and financial product development. Engaging with stakeholders from both the public and private sectors, PMN gathered valuable insights through fieldwork in flood-affected districts of Sindh. The project aimed to assess the impact of disasters and climate risks on communities and, in partnership with experts, developed innovative insurance-bundled financial products and a disaster risk reduction (DRR) framework tailored to the microfinance sector. PMN also took the lead in piloting these disaster-resilient financial products.

Pakistan Microfinance Network (PMN) assisted the UN Food and Agriculture Organization (FAO) in exploring and documenting opportunities to address gaps in Anticipatory Actions (AA) for economic and livelihood crises, a field mainly driven by climate hazards in Asia-Pacific. The research aimed to overcome the challenge of regularly accessing and updating socio-economic data. PMN's role involved defining socio-economic and livelihood indicators, thresholds, triggers, data sources, and necessary data collection systems for AA implementation. This was achieved through a comprehensive desk review and field exercises that mapped and analyzed livelihoods, vulnerabilities, crisis timelines, and impact pathways.

PMN is working closely with Microinsurance Centre @ Milliman (MiCM) to implement the technical assistance facility under Insuresilience Investment Fund (IIF). The objective of this collaboration is to fortify the adaptive capacity of SAFCO Microfinance Company (SMC) in the face of climate change by enhancing accessibility to and utilization of climate insurance solutions.

For this purpose, we are assisting SMC in expanding livestock loans bundled with insurance, by refining the products, streamlining operations, enhancing distribution, and educating staff and clients for informed decisions. Furthermore, we are introducing crop loans bundled with insurance, by analyzing its feasibility, collaborating with stakeholders, educating staff and clients, ensuring distribution, and refining it through a pilot phase.

Evaluating the consumer protection component under National Financial Inclusion Strategy (NFIS), the study assessed how effectively consumer protection regulations are being implemented by the financial services providers (FSPs) in practice and what additional measures need to be taken to enhance consumers experience with the formal financial sector.

The study showed that commercial banks, MFBs, NBMFPs and DSPs are all making efforts to raise awareness among clients and implement consumer protection measures. The study highlighted the need to raise awareness regarding dispute resolution mechanism and, in the case of NBMFPs, interest rates. The study also provided other avenues of learning through which client perception and satisfaction could be improved including personalized recommendations for commercial banks and MFPs, NBMFPS and DFSPs.

PMN conducted an impact assessment on FCDO’s Financial Inclusion Programme (FIP), which commenced in 2008. The study consisted of desk research on four key areas of intervention employed during the FIP implementation:

1. Digitization
2. Policy and Regulatory Framework
3. SMEs, and
4. Microfinance

The study analyzed the impact FIP had in enhancing financial inclusion and in creating a more enabling and sustainable environment. The FIP focused on facilitating equitable economic growth by improving access to finance for individuals, micro, small and medium enterprises especially for the marginalized groups including women and the youth.

This study commissioned by the World Bank analyzed the dynamics behind cost of delivery for microfinance providers from a financial perspective. Trend analysis of the industry and peer groups showed an overall rising cost of delivery corresponding almost with the growth of the sector. To contextualize this trend, peer market analysis was also conducted to provide a benchmark and to learn from the experience of more successful economies. A similar analysis was also conducted on the affordability of the sector.

The study also presented future areas of interventions that can enhance access to finance and drive the growth of the sector and the country. An important such area of intervention was the low-cost housing market which has the potential to not only provide housing security to people belonging to low-income households but could also provide low-income people with a tangible source of collateral.

PMN conducted a needs assessment to promote financial literacy and consumer protection among clients of Microfinance Providers (MFPs). Through field research and interviews, the study assessed clients' understanding of their rights, financial habits, and available grievance redressal mechanisms. Based on these findings, PMN developed targeted training modules and launched a national awareness campaign, aligned with the National Financial Inclusion Strategy. The campaign promoted responsible client behavior, raised awareness of financial products, and introduced grievance mechanisms. Using TV ads, videos, posters, and street theaters, the campaign reached over 14.5 million beneficiaries across Pakistan.

This background paper, part of The World Bank Group's Country Support Program for Pakistan under the Financial Inclusion Support Framework (FISF), aimed to enhance women's financial inclusion in Pakistan. It synthesized insights from interviews with leaders in finance, telecom regulators, and donors, alongside data from sources such as Access to Finance Surveys (2008 and 2015) and Findex. The paper emphasized the economic, social, and commercial significance of women's financial inclusion and offered global case studies to inform policy.

The study conducted a demand-supply gap analysis to identify product, financing, and institutional needs, forming the basis for future policy and funding discussions. By analyzing trends from 2008-2015 and using cross-sectional 2015 data, it proposed growth pathways for women’s financial inclusion, focusing on key financial institutions, regions, and instruments.

Pakistan Microfinance Network (PMN), in collaboration Accion’s Centre for Financial Inclusion (CFI), conducted research on the role of Government-to-Person (G2P) payments in promoting formal financial services. The study focused on Benazir Income Support Program (BISP) beneficiaries and aimed to determine whether G2P payments could serve as an entry point for financial inclusion and what factors contribute to successful transitions from simply cashing out payments to actively using formal accounts.

The qualitative research included interviews, observations, and focus group discussions. It was conducted at eight mobile money agent sites across Punjab, Sindh, and Khyber Pakhtunkhwa. Nine focus groups, including two with women, were held in both urban and rural settings to gather insights on G2P payment usage and financial behavior.

The Pakistan Microfinance Network (PMN), in collaboration with researchers from the London School of Economics, conducted a study on the impact of Pakistan's newly established Microfinance Credit Information Bureau (MF-CIB). The MF-CIB collected and stored borrowers' credit records, which could be accessed by all microfinance institutions (MFIs). The aim of the credit bureau was to improve transparency in the lending process, though its effects on borrowers' welfare varied depending on hidden information and market competition.

The research aimed to understand how the credit bureau changed borrower and lender behavior and its influence on credit access and pricing. Using randomized control trials, the study evaluated the rollout of the national credit bureau for microfinance lenders. The findings provided insights into how credit bureaus affected access to credit, pricing, and borrower behavior, ultimately informing policymakers on how to better implement credit information systems in the future.

The A2FS was conducted on request from the Government of Pakistan, with financial support from the World Bank, FCDO and SDC. Technical support was provided by FinMark Trust (South Africa) whereas Pakistan Bureau of Statistics assisted in sample design and selection and AC Neilson conducted the primary survey. This was a national level survey of nearly 10,000 households and collected data on indicators of economic behavior of individuals, savings and credit (both formal and informal channels), remittances, insurance, Islamic banking, use of technology, financial literacy and psychographics/attitudes.