This should go a long way to help set up businesses on modern lines and will also bring with it the necessary experience and technological support for this industry. While development is underway, it is important to recognize the challenges we are beset with. Of principal concern is the low coverage of Microfinance services. The Microfinance institutional framework currently supports barely 600,000 active borrowers.
Existing coverage of the formal microfinance sector is only 10% of the estimated 6 million households in need of Microfinance. The requirements clearly are above these norms as currently one fourth of the population of Pakistan is below the poverty line. Another feature is the high concentration across institutions, in lending and among clients.