Social Issue

According to the latest estimates of the extent of poverty in Pakistan, 24% of the population lives below the national poverty line: 31% in rural areas and 13% in urban areas. In addition, 38.8% of its inhabitants are poor according to the Multidimensional Poverty Index (MPI); Of these, 54.6% live in the countryside and 9.4% in cities.

Our Response

Microloans are a powerful tool to provide opportunities to excluded and marginalised communities.

The objective of ASA Pakistan (ASA-P) is to support those most in need who do not have access to the traditional banking system so that they can develop their own businesses. ASA-P also focuses its activity on providing services to the homeless in order to improve their socioeconomic situation. ASA-P is registered as an unlisted corporation and ASA International has more than 99% of its shares. The institution is in the process of converting to a Microfinance Bank (MFB), and ASA International will inject five million dollars to achieve this. ASA International began operations in 2007, and its successful business model has been replicated in Bangladesh and in eleven other countries in Africa and Asia.

ASA-P works exclusively in the Punjab and Sindh region, where it has one of its largest branch networks with 230. It operates mainly in urban areas, and the average value of its loans is $168, well below the credits of the other microfinance institutions in the country.

Expected Social Impact

With this investment of the Netri Foundation, it is estimated that ASA Pakistan will be able to provide 2,000 loans with the idea of supporting communities in the development of their businesses.