the microfinance opportunity in pakistan 1 november 2006 gregory chen shorebank international ltd...
TRANSCRIPT
The Microfinance Opportunityin Pakistan
1 November 2006
Gregory Chen
ShoreBank International Ltd
Mehr Shah
Pakistan Microfinance Network
2
1. Sizing the Credit Market
Estimated Adult Population
Non-Poor 14.5
Transitory Non-Poor 25.1
Transitory Vulnerable 14.3
Transitory Poor 13.3
Chronic Poor 6.6
Extremely Poor 0.9
Centre for Research on Poverty Reduction and Income Distribution (CRPRID) & Household Income and Expenditure Survey 2000 – 2001.
20.8
27.6
52.7
Household Income and Expenditure Survey: 2001Stratification by Consumption Levels
3
1. Sizing the Credit Market
KIBOR = 9%
Informal Markets =100 – 1000%
Total Market Size: 10 Million Loan Balance Per Client: 30,000 ($500)Advances: 300 Billion ($5 Billion)Interest Rate: 30% Annual Revenue: 90 Billion ($1.5 Billion)
4
2. Market Penetration – To Date
Active Borrowers Table
ACTIVE BORROWERS
-100,000200,000300,000400,000500,000600,000700,000800,000900,000
1,000,000
1999 2000 2001 2002 2003 2004 2005 2006
Years
Act
ive
Bo
rro
wer
s
5
2. Market Penetration - Projected
2006
Borrowers 143,000
Loan Portfolio US$ Millions 30
2010
1,549,498
510
Yield on Portfolio 35%
- Operating Costs (30%)
- Financing Costs (10%)
Return on Assets (5%)
Net US$ Millions (1.5)
Sample of 3 High Growth Microfinance Providers
30%
(15%)
(10%)
5%
25
6
3. Seizing the Opportunity
Vision
PhysicalInfrastructure
Capital
Staff Skillsand
Orientation
MgmtSystems
Technology
Enabling Regulation
7
Seizing the Opportunity
MicrofinanceInstitutions
State Bankof
Pakistan
CommercialBanks
Capital
Mgmt SystemsTechnology
Physical Infrastructure
Staff SkillsOrientation
Enabling Regulation
VISION
Donors
ServiceProviders