Capacity Building

The Pakistan Microfinance Network (PMN) established its pioneering Capacity Building Initiative (CBI) in 1997 to help microfinance managers run strong programmes. Measures include a variety of specialized trainings and helping practitioners establish linkages with international microfinance organizations.

Sustainable retail microfinance institutions (MFIs) stem from competent organizations that develop appropriate methodologies, the right mix of financial products, and cost-effective operations. It is therefore imperative that MFIs learn to balance decentralized operations with internal control. They must build computerized management information systems (MIS), train and incentivize their staff, and avoid delinquency in their loan portfolios. To be sustainable, MFIs must learn to manage their finances like commercial banks and, if licensed, cope with regulatory requirements.

The PMN also extends scholarship slots to small-scale MFIs with limited access and training budgets. This allows small practitioners to learn and share experiences with better-established players in the sector. The Network’s training events provide smaller MFIs with advocacy opportunities and a platform to outline their own microfinance activities and achievements.

The Network’s capacity building programme has been instrumental in promoting an attitudinal change in the sector and has helped positively change how practitioners perceive microfinance. This is reflected in how managers are constantly striving to bring their practices in line with international conventions.