Project Data Sheet

Project Data Sheets (PDS) contain summary information on the project or program: Because the PDS is a work in progress, some information may not be included in its initial version but will be added as it becomes available. Information about proposed projects is tentative and indicative.

PDS Creation Date
PDS Updated as of 16 Oct 2007

Project Name Microfinance Sector Development Program
Country Pakistan
Project/Program Number 29229-013
Status Approved
Geographical Location
In preparing any country program or strategy, financing any project, or by making any designation of, or reference to, a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.
Sector Finance
Subsector Microfinance
Strategic Agendas
Drivers of Change
Gender Equity and Mainstreaming Categories


Type/Modality of Assistance Approval Number Source of Funding Approved Amount (thousand)

Safeguard Categories

For more information about the safeguard categories, please see

Environment B

Summary of Environmental and Social Issues

Environmental Aspects
Involuntary Resettlement
Indigenous Peoples

Stakeholder Communication, Participation and Consultation

During Project Design
During Project Implementation


The Project will support the development of sustainable rural microfinance services through commercial banks and credit unions to finance viable farm and nonfarm economic activities and investments in household improvements, education, and health. About eighty percent of the subloans financed by the Project will be to people living below the poverty line, and approximately 36 percent of the subborrowers will be women. To accomplish this, the Project will provide a revolving line of credit and institutional strengthening for the executing agency, commercial banks, NGOs, credit unions, and subborrowers participating in the Project.

Project Rationale and Linkage to Country/Regional Strategy

Poverty continues to be a major problem in Pakistan, with an estimated 30-40 percent of the population living below the poverty line. Poverty is especially prevalent in rural areas, with an estimated 70 percent of the country's poor living in rural areas. Although many factors contribute to poverty, one of the key factors is the absence of liquidity that is needed to stimulate economic activity and growth. Traditional development projects have addressed this constraint through credit, but savings have long been known to comprise an equally, if not more, important source of funds for the rural poor in developing countries. Using a line of credit to meet existing loan demands, stimulate further investment by existing financial institutions in rural microfinance, and promote savings mobilization in rural areas represents a significant step toward resolving one of the constraints to improved standards of living in rural Pakistan today.

Development Impact

Project Outcome

Description of Outcome
Progress Towards Outcome

Outputs and Implementation Progress

Description of Project Outputs
Status of Implementation Progress (Outputs, Activities, and Issues)
Status of Development Objectives
Material Changes

Business Opportunities

Date of First Listing 2007 Feb 22
Consulting Services
A total of 64 person-months of international and 14 person-months of domestic consulting services will be financed under the Project. The consultants will include specialists in rural microfinance banking, rural microfinance development, management information systems, gender in development and credit union development. All consultants will be selected and engaged by the executing agency in accordance with the Bank's Guidelines on the Use of Consultants and other arrangements satisfactory to the Bank for the engagement of domestic consultants.
The Project requires the procurement of service vehicles and equipment. Procurement of goods envisaged under the Project will be limited in size, and will be awarded on the basis of direct purchase or local competitive bidding procedures in accordance with the Bank's Guidelines for Procurement. With respect to the procurement of goods and services to be made by the subborrowers under funds onlent from the implementing agencies under the Project, normal commercial practices appropriate to the local trade will be applicable in view of a large number of small procurement items.
Procurement and Consulting Notices


Concept Clearance
Fact-finding 05 Jun 2000 to 23 Jun 2000
Management Review Meeting 27 Jul 2000
Approval 13 Dec 2000
Last Review Mission


Approval No. Approval Signing Effectivity Closing
Original Revised Actual


Date Approval Number ADB (US$ thousand) Others (US$ thousand) Net Percentage
Cumulative Contract Awards
Cumulative Disbursements

Status of Covenants

Covenants are categorized under the following categories—audited accounts, safeguards, social, sector, financial, economic, and others. Covenant compliance is rated by category by applying the following criteria: (i) Satisfactory—all covenants in the category are being complied with, with a maximum of one exception allowed, (ii) Partly Satisfactory—a maximum of two covenants in the category are not being complied with, (iii) Unsatisfactory—three or more covenants in the category are not being complied with. As per the 2011 Public Communications Policy, covenant compliance ratings for Project Financial Statements apply only to projects whose invitation for negotiation falls after 2 April 2012.

Approval No. Category
Sector Social Financial Economic Others Safeguards Project Financial Statements
Loan 1805

Contacts and Update Details

Responsible ADB Officer ()
Responsible ADB Department Central and West Asia Department
Responsible ADB Divisions Regional Cooperation and Operations Coordination Div, CWRD
Executing Agencies Pakistan Poverty Alleviaiton Fund


Project Website
List of Project Documents