Khushhali Bank Limited (KBL) has converted to a public limited company Incorporated with the Securities & Exchange Commission of Pakistan and licensed by State Bank of Pakistan to operate under Microfinance institutions Ordinance 2001 effective April 1, 2008.

What does it mean for the institution and the fledgling microfinance sector in Pakistan!

The most significant aspect of this conversion will be profiling the largest microfinance institution within the sector as a commercially motivated private sector driven institution committed on the path of sustainable growth. The experience in terms of Pakistan and elsewhere has generated sufficient evidence that successful institutions pursue the path of commercialization.

Khushhali Bank Limited has over the last seven years influenced the complexion of the microfinance industry in the country and has been successful in manifesting that public-private partnerships can serve as a model to deliver core public-policy development agenda’s not just as a rhetoric, but as a sustainable and genuine engine of jobs and services for the economically less privileged – a majority of our society.

Microfinance has been mainstreamed within the formal financial services industry and a competitive environment exists within the sector; the outcome is growth and outreach, increase in the number of microfinance players, Greenfield microfinance banks, entry of commercial banks into microfinance, anticipated conversion of leading non-regulated Microfinance Institutions into microfinance banks, diversification in products & services and development of distribution networks as conduits of future growth in the rural & marginalized areas of the country.

This has encouraged the development of the allied meso sector such as expanding microfinance networks, specialized rating agencies, involvement of leading audit and accounting firms with microfinance and access of credit bureau services to microfinance clients.

Today, microfinance in Pakistan is a sector in its own right rather than just a tool for poverty alleviation, with a high trajectory growth curve.

Khushhali Bank is committed to continue supporting developments that lead towards growth and prosperity in the industry & changes that we envisage will not only add new dimension to the business but enhance the bank’s ability to attract private risk capital, greater shareholder confidence and return on their investment.

About Khushhali Bank Limited: Khushhali Bank Limited (KBL) is rated as Pakistan’s largest and fastest growing retail microfinance bank operating under the Central Bank regulations. Established in the year 2000, the bank is funded by leading international financial institutions as a partnership between public, multinational and private sector commercial financial institutions. KBL’s mission is to market financial services tailored for the low income segment in line with international microfinance practices through an extended network operating across the country’s rural and urban divides.