Founded in the year 2000, Khushhali Bank Limited was a part of the Government of Islamic Republic of Pakistan's Poverty Reduction Strategy and its Microfinance Sector Development Program (MSDP). MSDP was developed with the facilitation of Asian Development Bank (ADB). With its headquarters based in Islamabad, Khushhali Bank Limited operates under the supervision of the State Bank of Pakistan (SBP) and many central (commercial) banks are its shareholders. The mandate remains to retail microfinance services and to act as a catalyst in stabilizing the country's newly formed microfinance sector.
Khushhali Bank operates under the Microfinance Sector Development Program (MSDP) which was initiated by the Government of Pakistan through a Microfinance Development Policy. MSDP has an important objective â€“ to provide affordable financial and social services to the poor, for a significant impact on poverty reduction through:
The MSDP provides an integrated package of policy reforms and most optimum means for institutional development, with the objective of outreaching expansion to facilitate growth of the microfinance sector.