Its definition has to be broad based to include micro-credit 1 for tiny informal businesses and micro-entrepreneurs who are provided loans and a range of savings products and transfer services. 2 A range of options exist to intermediate microfinance which goes beyond NGOs, and includes commercial banks, state-owned development banks, financial cooperatives, and a variety of other licensed and unlicensed non-bank financial institutions.
Setting aside the broader framework for microfinance, it is important to recognize that Pakistan is a late starter in developing the microfinance industry. There is a lot of work ahead to promote and systematically develop this sector.