SRSP launched its microfinance program in 1991 as a response to financial inaccessibility for over 90% of rural households.
The traditional micro-finance model had been highly successful in much densely populated environments where agriculture productivity was high or in urban areas. However, in KP, the thin spread of population, the subsistence
nature of the economy and the opposition from grassroots ideological groups made the traditional micro-finance model unsustainable. To overcome this unique situation, the Village Bank model was developed by SRSP.
The Village banking microcredit program has disbursed PKR 1278.9 to 64,976 households within the villages by organizing women groups, giving them financial and numeracy training. The second model, Naway Sahar urban retail program, has disbursed PKR 427.44 million financing 23,840 households in current time.
Another shortcoming of the traditional micro-finance model, was that it ignored the poorest of the poor who found the interest rate very high and would not be part of the programme. To overcome this, fund was designated as Community Investment Fund which could only be used for meeting the social protection needs of the poorest in the communities. CIF has benefitted 62,893 households and disbursed a total of PKR 852.99 million to vulnerable community members, including widows and physically challenged individuals.
A survey of over 1,100 CIF beneficiaries revealed that 35% of the income generated from CIF interventions was invested in improving education and health for their children. With Government of KP, Australian-AID, and Pakistan Poverty Alleviation Funds being major financiers of SRSP’s CIF Program, over 62,893 members have been given access to financial services, all of whom are women.
Moreover, the Climate Smart fund was recently launched with the financial assistance of GIZ. While mainly focusing on adaptation against climate change and disaster needs, it exclusively caters to the economic inclusion and empowerment of women within these communities.
Infrastructure Projects
Trained in Employable Skills
Disbursed through Microfinance
Children Enrolled
Million Households Organized
People provided with Paralegal services
Electricity Generating Capacity
Houses Constructed
Displaced people facilitated
