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Transparent Pricing In Pakistan

The Transparent Pricing Initiative in Pakistan has published standardized pricing data from 31 microfinance providers, representing an estimated 63.1% of Pakistan’s microloan borrowers. Launched in 2013 the Initiative is delivered in partnership with the Pakistan Microfinance Network.

Microfinance in Pakistan

Pakistan’s microfinance industry is moderately-sized. As of 2012, around 45 institutions provide microfinance services to a little over 2.3 million active borrowers, out of which eight institutions hold 80 percent of the market share. Commercial banks, Microfinance banks, NGO microfinance, and government-backed rural support programs provide microfinance service in Pakistan. Seeing it as an important tool in addressing poverty, the government of Pakistan has played an instrumental role in reforming policy framework and channeling funds to the sector. Issues of consumer protection and social performance awareness have also been gaining increased attention.

Truth-in-Lending Legislation

Pakistan has a developed regulatory and supervisory system in place for its financial sector. Microfinance banks and Commercial banks are regulated by the State Bank of Pakistan. The microfinance institutions ordinance of 2001 set out the road map for prudential regulatory and supervisory framework for microfinance institutions. The current regulatory framework however did not include specific truth in lending legislation aimed at protecting credit consumers. A number of consumer protection guidelines has been released by the State Bank of Pakistan that do address specific issues in consumer credit rights and transparency.

Pakistan Price Graph

The price graph presented below shows the prices of all the microloan products in the Pakistan dataset. Each data-point represents a real loan given to a real borrower, calculated using original loan documentation from the institution. The size of the data-point correlates with the number of borrowers that have a loan of that product at that loan amount. The color of the data-point correlates with the Transparency Index of the sample. The interactive legend beneath the graph can be used to change the graph axis and labels. Try the custom feature to see price correlations with attributes such as loan purpose, institution type, loan term and percent of gross national income.

The pricing data reveals a curve in the market average APR, showing that loans of a smaller size rise dramatically in price.  Each bubble represents the price of a real loan given to an actual client.  The size of the bubble represents the number of clients with loans of this approximate size, and the colour indicates the type of institutions.  The data indicates a strong correlation of loan products with lower prices being advertised with a more transparent price. Pricing in Pakistan is low relative to loans of similar scale in other countries.

Pakistan Institutions

Institution# BorrowersPortfolio (US$)ProductsTransp. IndexParticipating SinceAge of Data
KBL468,300120,082,00016902013-Aug29 mos.
KF233,60041,416,0004522013-Jun28 mos.
NRSP399,90070,157,0003902015-Apr29 mos.
ASA230,40029,637,00031002013-May29 mos.
TMFB221,20085,449,0007682013-Jun29 mos.
Akhuwat200,93019,942,586N/AN/ANon-Participating -
NRSP-Bank171,71846,161,984N/AN/ANon-Participating -
FMFB163,54438,481,3239N/A2013-May47 mos.
UPAP150,93215,414,601N/AN/ANon-Participating -
TRDP100,00013,817,0003682013-May29 mos.
PRSP75,6569,907,1763N/A2013-May47 mos.
BRAC^P57,30011,869,0003512015-Apr29 mos.
SRSO51,1007,775,0003852013-May29 mos.
SSF46,0004,776,0003492013-Nov29 mos.
OCT44,2135,054,057N/AN/ANon-Participating -
FINCA82,00043,559,0009572013-May29 mos.
JWS36,0006,545,0002502013-May29 mos.
RCDS35,5524,856,1224N/A2014-May47 mos.
DAMEN35,1857,150,8641N/A2013-May47 mos.
FFO22,4003,335,0003382013-May29 mos.
OLP21,4003,510,0003492013-May29 mos.
CSC17,6003,147,0001472013-May29 mos.
AMRDO13,8001,206,0005412013-Dec29 mos.
WMBL13,8006,105,0003942015-Jun29 mos.
Mojaz13,4002,415,0002522013-May29 mos.
SDF11,5001,041,0004332013-Jul29 mos.
POMFB8,5002,795,0004782013-Jun29 mos.
Asasah8,9671,039,229N/AN/ANon-Participating -
APNA8,6063,252,501N/AN/ANon-Participating -
OPD7,500918,0002472013-May29 mos.
AGAHE7,300797,0002512013-May29 mos.
NRDP6,1841,521,9723N/A2013-Jul47 mos.
GBTI6,100669,0003N/A2013-Nov47 mos.
WASIL4,3001,135,0002442015-Jun29 mos.
Micro Options4,000768,0005692013-Jun29 mos.
VDO3,900489,0003N/A2013-Jun47 mos.
SVDP3,900811,00013N/A2013-Aug47 mos.
SRSP3,822261,3182N/ANon-Participating -
SRDO3,500766,0004352013-Jun29 mos.
SWWS3,148292,708N/AN/ANon-Participating -
Baidarie2,891482,841N/AN/ANon-Participating -
BLCC2,404254,285N/AN/ANon-Participating -
OSDI2,000923,0003N/A2015-Apr29 mos.
APMBL1,8001,401,0003682013-Oct29 mos.
MES1,617448,731N/AN/ANon-Participating -
BEDF1,400209,0003N/A2013-May47 mos.
Sayya1,077169,976N/AN/ANon-Participating -
KCDO80094,0001N/A2013-May47 mos.
MRDO6416,987,642N/AN/ANon-Participating -
Buksh F615107,657N/AN/ANon-Participating -
KKN/AN/AN/AN/ANon-Participating -
PPCBLN/AN/AN/AN/ANon-Participating -
SaathN/AN/AN/AN/ANon-Participating -
SSSWAN/AN/AN/AN/ANon-Participating -
STPN/AN/AN/AN/ANon-Participating -
WSON/AN/AN/AN/ANon-Participating -
Caps / Zoom options
Key Statistics
# Samples:
# Products
# Institutions
# Countries
# Borrowers
Loan Portfolio (USD)
% Products using declining balance
% Products with one or more fee
% Products with one or more insurances
% Products with compulsory deposits
Filter table:
Country InstAbbrev SampleCode Loan Amount USD Loan Term (Months) SampClients FullAPR DateApproved
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X Axis
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N (# of Samples)
Total Borrrowers of Samples
Avg
Min
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Std Dev
By Inst Type
By Country

Total Borrowers of Samples

X Axis
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