Executive Summary: 

Microfinance sector plays a crucial role in economically empowering customers that can not access commercial banking services. Despite being considered a mature microfinance sector in Pakistan, the experience during COVID-19 revealed certain vulnerabilities that require policy shifts to ensure resilience and agility in responding to such shocks in the future. This policy brief recommends regulatory convergence between different microfinance institutions, better and quick communication to borrowers regarding their instalments payments, and a shift to low-powered incentives to microfinance loan officers in the event of a shock to protect the interest of microfinance borrowers and the institutions themselves.

Download The Brief