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THE ORGANIZATION FOR PARTICIPATORY

DEVELOPMENT (OPD)

DEVELOPING INCLUSIVE, EQUAL AND


SUSTAINABLE SOCIETY

BUSINESS PLAN
2016-17 – 2018-19

Submitted to:

THE PAKISTAN POVERTY ALLEVIATION


FUND (PPAF)
TABLE OF CONTENTS
Executive Summary ...............................................................................................................4
Section I: Problem, Institutions and Management ................................................................6
1. 1 Poverty, Inclusive Financial Services and Pakistan ..................................................7
1.2 Institutional History and Learning ...........................................................................8
1.2.1 Organization for Participatory Development: An Overview ...............................8
1.2.2 Institutional Development ................................................................................8
1.2.3 Vision, Mission and Goals..................................................................................9
1.3 Governance .............................................................................................................9
1.4 Senior Management Team (SMT) ..........................................................................10
Section II: programme strategy, operations and finances ...................................................13
2.1 Programme Strategy .............................................................................................14
2.2 Products ................................................................................................................14
2.3 Outreach................................................................................................................15
2.4 Pricing....................................................................................................................15
2.5 Competitive Environment .....................................................................................16
2.6 Processes and Operations .....................................................................................17
2.6.1 Loan Methodology .......................................................................................... 17
2.6.2 Loan Characteristics ........................................................................................ 18
2.7 Recovery Performance ..........................................................................................19
2.8 Risk Management ......................................................................................................20
Section III: Financial Performance and Strategic Priorities ..................................................21
3.1 Profitability ...........................................................................................................22
3.2 Recovery Performance ..........................................................................................22
3.3 Portfolio Quality ....................................................................................................22
3.4 Strategic Priorities for the next 12 months: Starting from August 1st 2016 ...........23
3.4.1 Accomplishing 100% recovery ........................................................................ 23
3.4.2 Expanding the outreach .................................................................................. 24
3.4.3 Reducing Client drop-out rate ......................................................................... 25
3.4.4 Professionalising Employees ........................................................................... 25
3.4.5 Using Management Information System (MIS) creatively ................................ 25
3.4.6 Improving Internal control .............................................................................. 25
3.5 Strategic Orientation and Approaches ..................................................................26
Section IV: The Business Plan ..............................................................................................27
4.1 Market / Prospective Clients .................................................................................28
4.2 Products / Methods...............................................................................................29
4.3 Fee Structure .........................................................................................................29
4.4 Outreach................................................................................................................29
4.5 Organisational micro-credit Delivery structure .....................................................30

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4.6 Reaching Out .........................................................................................................30
4.7 Collaborations and Partnerships ...........................................................................30
4.8 Learning and Development ...................................................................................30
4.9 Financial Projections .............................................................................................31
4.9.1 Portfolio Projections ....................................................................................... 37
4.9.2 Income/Expenses Projections ......................................................................... 39
4.9.3 Cash Flow Projections ..................................................................................... 42
4.9.4 Balance Sheet Projections ............................................................................... 42
Annex 1: The Board of Directors ..........................................................................................45
Annex 2: OPD’s Committees ................................................................................................46
Annex 3: OPD Support Programme: The Board of Director .................................................47
Annex 4: OPD’s Organogram ...............................................................................................48
References ...........................................................................................................................49

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EXECUTIVE S UMMARY
This document presents the Organization For Participatory Development’s (OPD)
Business Plan (2016-17 – 2018-19). It details the OPD’s microfinance programme,
presents its current performance and elaborates a strategic plan, aimed at
strengthening the social and community orientation of the OPD, professionalising its
organisational governance, and processes and structuring a socially responsible
micro-finance programme in Gujranwala District. The Business Plan capitalises on
the institutional support provided by the Pakistan Poverty Alleviation Fund (PPAF)
over the years and sees it as a core strategic input for achieving the desired results.

The OPD signed its first partnership agreement with the PPAF in May 2002. Since
then, the OPD has provided loans to low-income entrepreneurs, disbursed financial
capital, and invested in improving its governance, human resources, management
structures and capacity to monitor, audit and review efficiency and effectiveness of its
micro-credit programme. In partnership with PPAF, the OPD has introduced the
Triple Bottom-Line (TBL) framework of managing sustainability, which emphasises
that organisations must produce social, environmental and economic value. The
OPD is committed to perform its economic, social and environmental role in low-
income communities.

It is estimated that there are 400,000 to 550,000 potential borrowers in Gujranwala


district in line with PMN’s methodology and the framework offered by Kraus et al. 1
The current microcredit portfolio of the district is approximately PKR 3.4 billion with
149,777 active borrowers (PMN 2016), indicating current penetration rate between
25% and 35%. Thus, there is still a gap to reach out another 250,000 to 300,000
potential borrowers in the district.

The OPD values its longstanding partnership with the PPAF in managing its
microcredit portfolio. The generous financial as well as technical support from the
PPAF helped the OPD to consolidate its position so far and now aim to scale up in
next three years. In addition to the PPAF’s active portfolio of PKR 84 million, a credit
line of PKR 220 million and an endowment fund of PKR 17.6 million are some of the
snapshots of this valuable partnership.

The OPD’s current gross portfolio stands at PKR 90.3 million (June 2016) is
projected to grow to PKR 306.3 million in next three years. Similarly, the
outstanding loan is projected to grow from 6,095 to 16,584 in next three years. The
number of branches will be doubled by the end of 2018-19 to 10. In addition, the
OPD intends to increase number of SOCs form 5 per branch to 6 to optimise the
operational costs per branch. Thus, total number of SOCs is projected to grow to 60
in next three years. The OPD’s average loan size will also growth from its current

1
Ghanghro and Khan 2015; Kraus et al. 2012.

4
level of over PKR26,000 to approximately PKR 32,000, PKR 36,000 and PKR 37,000
by the end of 2016-17, 2017-18 and 2018-19 respectively.

This expansion will be achieved through accomplishing maximum recovery, expanding the
outreach, reducing client dropout/exit rate, professionalising employees, effectively using
management information system (MIS) and improving internal controls.

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SECTION I: PROBLEM, INSTITUTIONS AND MANAGEMENT
This section presents a brief overview of the problem of poverty and the role of MFIs
in general and the OPD in particular in addressing the issue. The section also outlines
the governance and management structure of OPD.

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1. 1 POVERTY, INCLUSIVE FINANCIAL SERVICES AND PAKISTAN

Poverty has been a major challenge for policy makers in Pakistan. In line with the
national poverty line, the proportion of poor in Pakistan based on 2011 data is
12.4%, which declined from 23.9% in 2005 (GoP 2014). The poverty estimates based
on US$1.90 and US$3.10 a day for the same period are 8.3% and 46.0% respectively
(OPHI 2016). However, the estimates for the newly adopted Multidimensional
Poverty Index (MPI) suggest that 44.2% of Pakistanis are poor (World Bank 2016).
Even though since 2005 the GDP has been growing an average 5 percent a year, it is
not enough to alleviate absolute, relative, situational and generational poverty. The
evidence suggests that economic growth without equity considerations will not
eliminate poverty (SPDC 2015).

The provision and access to credit and financial services is seen as one of the short to
medium-term strategies for poverty alleviation. In particular, micro-financial
products address the relative and situational poverty and offer low-income families
opportunities to improve their income. Access to affordable financial services,
evidence suggest, reduces poverty2. In Pakistan, only 14% of the people have access
to the formal financial institutions while the informal financial arrangement such as
committees, shopkeepers, moneylenders, hawala/hundi money transfers serve the
needs of 36% 3 . The situation demands an institutional change in the financial
service. Micro-Finance institutions (MFIs) can bring the desired change by
developing affordable financial products that serve the need of the poor and include
them in the mainstream economic development.

Increasingly, the global institutions such as the World Bank and the United Nations
see MFIs as an important part of the global strategy of poverty reduction. Evidence
suggests that at the end of 2013, the microfinance community reached 211 million
clients, 114 million of whom were living in extreme poverty 4. However, MFIs have
still been finding it challenging to innovate new products and strategies of reducing
extreme poverty. This is also the case in Pakistan.

In Pakistan, three different groups of organisations- Microfinance Banks (MFBs),


Microfinance Institutions (MFIs) and Rural Support Programmes (RSPs) - provide
micro-credit services to low-income groups and individuals. The estimated worth of
the microcredit portfolio is over PKR 104 billion with 4 million active borrowers,.
This represents only 19.5% of the total market potential of 20 million individual
borrowers in 20165. The micro-credit industry in Pakistan is still in its early years.
However, with the emerging national level regulatory framework, the

2
Claessens and Tzioumis 2006
3
Nenova et al. 2009
4
https://stateofthecampaign.org/2015-report-executive-summary/
5
PMN 2016; Ghanghro and Khan 2015.

7
professionalization of MFIs’ organisational governance and management structures
and the Triple Bottom-Line sustainability framework together can accomplish the
reduction in poverty in future. OPD aims to be an active part of that future.

1.2 INSTITUTIONAL HISTORY AND LEARNING

1.2.1 ORGANIZATION FOR PARTICIPATORY DEVELOPMENT : AN OVERVIEW

The Organization for Participatory Development (OPD) was first registered in 1991,
under the Societies Act 1860 as a non-governmental civil organization. The OPD
started its microcredit programme in 1993 in consultation and partnership with the
Orangi Pilot Project (OPP, Karachi). It replicated its strategy of alleviating poverty in
Gujranwala city by providing affordable loans to low-income individuals who did not
have access to high quality financial institutions. The programme aimed at building
assets, reducing commercial risk, and sustaining commercial and financial viability of
small enterprises. The partnership with the OPP and successful replication of its
microcredit strategy led OPD to establish a range of partnerships with national and
international donors and NGOS, including UNDP, UNICEF, the Canadian
International Development Agency (CIDA), The Asia Foundation (TAF) and LEVIs
and PPAF. However, it is the partnership with PPAF, which has contributed greatly
in building OPD as a socially responsible institution. With its head office in
Gujranwala city, currently the OPD operates in three out of five tehsils in the district,
namely Gujranwala City, Gujranwala Saddar, Kamoke and Wazirabad.

1.2.2 INSTITUTIONAL DEVELOPMENT

In the last 25 years, the OPD has implemented numerous projects focusing on
education, health, micro-credit, enterprise development, women’s empowerment as
well as research and advocacy. However, in recent years, the OPD has focused
exclusively on the sustainability of its micro-credit programme in consultation and
collaboration with the Pakistan Poverty Alleviation Fund (PPAF), aiming to establish
itself as a Non-Banking Financial Company (NBFC). In so doing, the OPD has greatly
benefited from the professional advice and financial support provided by PPAF and
has acquired a licence and is incorporated under Section 42 of the Companies
Ordinance 1984 under its new brand name the OPD Support Programme (OPD-SP).
Currently, it is in the process of incorporation under NBFC regulations. The OPD will
remain as a registered organisation under the Societies Act 1860 while all assets and
liabilities pertaining to its microfinance programme will be transferred to the OPD
Support Program.

In order to become a professional and successful NBFC, OPD has in July 2016
completed a management review of its organisational processes, practices and
structure: this includes a review of leadership, decision-making practices and
processes, organisational structure, strategy and culture, community-

8
orientation/relations, people management, administrative policies, and learning and
training procedures and arrangements. Two UK-based management scholars and
practitioners conducted the review and presented their findings and
recommendation to the Board. The management review was a step to address the
PPAF recommendations related to governance, HR policies and internal controls.
Based on the management review, the Board in August 2016 has provided the
strategic direction which OPD has begun to implement both at the organisational and
programme levels. Below we provide a brief overview of the changes and current
management structure.

1.2.3 VISION, MISSION AND GOALS

The core values that the OPD realises in its programmes and processes are
transparency, accountability and sustainability.

Vision: To contribute in the development of an inclusive, equal and sustainable


society

Mission: To promote and deliver sustainable development by alleviating poverty and


reducing gender gaps.

Goals:
 Providing access to quality and affordable financial services to improve
household income and living standards of low-income entrepreneurs
and businesses.
 Delivering sustainable development to low-income communities with
particular focus on gender equality, quality education and preventive
health services, healthy nutrition, sustainable agriculture and
affordable and inclusive microcredit & socially responsible and
sustainable microenterprise development.
 Developing and implementing the Triple-Bottom Line sustainability
framework to managing organisational processes and its impacts.

1.3 GOVERNANCE

The OPD is registered under the Societies Act 1860 and governed by its constitution.
The OPD’s Executive Council and Board of Directors is entrusted largely with the
governance responsibilities. The Executive Council is comprised of 15 members while
there are nine members of the Board of Directors excluding the CEO, who is a non-
voting member of the Board of Directors. The Board is headed by a Chairperson and
assisted by the General Secretary, Treasurer and two committees, i.e. the Finance and
Audit Committee and the Human Resources Committee. Both committees are
constituted to oversee financial and human resource matters and are headed by the

9
chairperson and two members. The Board of Directors meets quarterly while both
committees also meet quarterly and hold separate meetings. The board is gender
balanced, comprising five men and four women. The list of the Board of Directors
and the details of Audit Committee and HR Committee is given in Annexes 1 and 2.

Since the OPD is going through an institutional development process and in the next
quarter it will be transformed and rebranded as the OPD Support Programme once
the process of licensing and incorporation is completed under NBFC. Currently,
Section 42 of the Companies Ordinance governs the OPD Support Programme,
implemented by the Securities and Exchange Commission of Pakistan (SECP). The
ordinance requires a minimum of three directors/promoters to make up the Board of
Directors, which direct and control the strategic process and direction of the
organisation and ensure that the OPD Support Programme follows the principles
related to transparency and accountability, the legal and regulatory environment,
appropriate risk management measures, information flows and the responsibility of
senior management and the board of directors” 6. The board of the OPD Support
Programme consists of three directors/promoters (for details see Annex 3), which
will expand in the next 8 months by bringing in like-minded, supportive and willing
professional members of society.

For the transition period (12 months, starting from August 2015), until all assets and
liabilities from the OPD are transferred to the OPD Support Programme, the current
OPD board and its committees will continue to provide help, support and guidance to
the Senior Management Team (SMT), which is detailed below.

1.4 SENIOR MANAGEMENT TEAM (SMT)

The OPD’s senior management is comprised of its founder and Chief Executive
Officer (CEO) Mr, Qurban Raza Shah, a Chief Operating Officer (COO) Dr. Shakil
Ghori (this is an interim position and it aims to implement the strategic changes,
approved by the Board). In addition, both the CEO and COO, the senior management
team includes Mr. Akbar Baig, Mr. Sulman Tariq and Mr. Shehzad Warrich based at
the OPD’s head office and 5 Branch Managers based in branch offices situated in
Gujranwala, Kamoki and Wazirabad. The qualifications and experiences of key
people in key management positions are:

Chief Executive Officer: Mr. Qurban Raza Shah – Mr. Shah is a veteran social
development thinker and a longstanding advocate of voicing and promoting
economic and political rights of the poor in Pakistan. He has more than 50 years of
management and leadership experience.

Role and responsibility: Overall responsibility of strategic direction.

6
SECP, Corporate Governance, https://www.secp.gov.pk/corporate-governance/corporate-governance/

10
Chief Operating Officer: Dr. Shakil Ghori: With a master’s degree in Management
of Non-Governmental Organizations from London School of Economics (LSE), and a
PhD focusing on customer satisfaction, service marketing and quality assurance in
higher education from Oxford Brookes University, United Kingdom, Dr. Ghori has
more than 20 years of professional experience of working in the United Kingdom and
Pakistan.

Role and Responsibility: Reporting to CEO, overall responsibility to lead


organisational and programme transition.

Manager Field Operations and Teams: Mr. Mirza Akbar Baig – Mr. Baig has a
master’s degree from Punjab University and worked for more than 13 years on
development projects. For more than nine years he worked on managing
microcredit/microfinance projects. He is a master trainer in Micro Entrepreneurship
and attended the TOT workshop at the First Women Bank of Pakistan. He also
attended training workshops on Islamic Agri-finance, support group methodologies,
gender & development, social mobilisation, participatory methods and monitoring &
evaluation.

Role and Responsibility: Reporting to COO, overall responsibility to design and


manage secure and fast loaning and recovery management system.

Manager, Finance, Accounts and Compliance Team: Mr. Sulman Tariq–


With an MBA degree in Finance and certifications from LUMS in financial
management, strategic management and human resource management, Mr. Tariq
has more than 12 years’ experience of working on microfinance and other
development projects.

Role and Responsibility: Reporting to COO, overall responsibility of Designing


and managing efficient and legally robust financial systems- ensuring compliance

Manager, Human Resources, Administration & Legal Affairs Team: Mr.


Shehzad Waraich: Mr. Waraich is a trained and practising lawyer and a member of
District Bar Council, Gujranwala. He has more than 10 years working experience and
specialises in dealing with civil, criminal, and banking courts as well as litigating
cases involving financial matters.

Role and Responsibility: Reporting to COO, overall responsibility of developing


and implementing a robust risk management and HR system.

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Manager Field Monitoring and Innovation: (In the process of
recruitment)

Role and Responsibility: Reporting to COO, overall responsibility of developing


and implementing an efficient and effective M&E system and testing new
community-based approaches to micro-credit and community development.

For Organogram and details of other employees, Please see the Annex 4.

12
SECTION II: PROGRAMME STRATEGY, OPERATIONS AND
FINANCES
The section details the performance of the OPD. This includes the OPD’s programme
strategy, operations and finances. This performance is a reference point for the
business plan, which this document presents.

13
2.1 PROGRAMME STRATEGY

The programme strategy includes financial product, outreach, pricing and


competitors. The section explains the type of financial products that the OPD
currently offers, existing clients, and value of outstanding portfolio, target groups,
gender disaggregation data, geographical coverage and productive sectors. Similarly,
product pricing highlights interest charged and fee structure, method of interest
calculation, operating costs and income. This section also provides a competitors’
review in the district that constitutes the perspective and the context in which the
aforementioned information offers comparative understanding

2.2 PRODUCTS

The OPD offers three types of financial products to low income entrepreneurs and
businesses, i.e. working capital loans, social franchise loans and microenterprise
loans. All three products are designed to address the needs of low-income
entrepreneurs. The OPD is currently evaluating the economic and social
performance of its products, based on the market intelligence and changing demands
of its primary stakeholder- low-income entrepreneurs. The current number of loans
under working capital, social franchise and micro-enterprise are 5,724, 34 and 106
respectively. Further details of these products are presented below.

Table 1: The OPD’s Financial Product


Working Capital Social Franchise Loan Micro-Enterprise Loan
Loan
Basic criteria As per the OPD As per the OPD policy As per the OPD policy
policy
Period of loan 12 months 12 months 12 – 15 months

1st Loan cycle Rs.10,000-30,000 Rs.20,000-30,000 Rs.30,000-50,000

2nd Loan cycle Rs.31,000-50,000 Rs.31,000-45,000 Rs.51,000-75,000

Repayment procedure Instalments every Instalments every 30 days Instalments every 30 days
30 days
Grace period 5 working days Instalments every 30 days Instalments every 30 days
# of instalments 12 12 12 – 15

Purpose of loan  Productive loans  Registered education  Strengthen small and


for small legal entities for improving medium enterprise
businesses quality
 Legal family health
centres

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2.3 OUTREACH

The OPD focuses on entrepreneurs (both men and women) living and doing business
in low- income areas in and around Gujranwala city. The five branch offices are
located in Gujranwala (three branch offices, i.e. Satellite Town, Shaheenabad, and
Khiali), Wazirabad (one branch office) and Kamoke (one branch office). The OPD’s
clients engage in commerce, retailing, small-scale trading, handicrafts, small-scale
manufacturing, light engineering workshops and the service sector, livestock, poultry
and fish farming. . The OPD (August 2016 data) serves 5,864 entrepreneurs out of
which 3,106 are women (close to 53%). The OPD’s number of clients under different
financial products and productive sectors are presented below:

Table 2: Financial Products and Productive sectors


Categories in Working Capital Loans 31/8/2016 Number Active Clients
Commerce/ retailing/petty trading 4,643
Capital Loans

Livestock/poultry/fish farming 22
Working

Manufacturing/light 195
engineering/workshop
Handicrafts 727
Services sector 137
Social Franchise Loan 34
Micro-Enterprise Loan 106
Total 5864

2.4 PRICING

The OPD has adopted a uniform pricing strategy for all of its financial products. The
pricing includes 20% service charges on a flat rate basis, 1% processing fee charged
up front (reduced from 3% from April 2016 in line with PPAF’s advice), 1%
contingency fee to underwrite the loan amount in the event of a client’s death. In
addition, PKR100 are also charged as up front application fees. The pricing is in line
with other mainstream MFIs in Gujranwala. The OPD’s income from its microcredit
portfolio covers 100% of the operating costs.

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2.5 COMPETITIVE ENVIRONMENT

The OPD started its microcredit programme in 1993 in Gujranwala district. It has
extensive experience in delivering individual loans. There are three types of
organisations operating in the microcredit/microfinance sector in Gujranwala
district, i.e. MFBs, MFIs and RSP. 15 such organisations working in Gujranwala
district (PMN 2016), as listed below:

 ASA Pakistan
 First Microfinance Bank Limited (FMFBL)
 Khushhali Bank
 Kashf Foundation
 National Rural Support Program (NRSP)
 Jinnah Welfare Society (JWS)
 Punjab Rural Support Program (PRSP)
 Tameer Microfinance Bank Limited
 Finca Micro Finance Bank
 APNA Micro Finance Bank
 U-Micro Finance Bank
 Waseela Micro Finance Bank
 Sahil Development Organization
 AKHUWAT Foundation
 Pak Oman Micro Finance Bank

Data below shows that other MFIs and RSPs have a larger number of active loans,
bigger portfolios and more branches than the OPD.

Table 3: MFIs in Gujranwala: Active Loans, Portfolio and


Branches

NGOs/MFI institutions Active loans Portfolio Branches


Akhuwat 542,163 74 billion 500
NRSP 328,170 11.1 billion 67
Kashf 230,369 4.48 billion 230
ASA 246,000 3.98 billion 187
Asasah 170,000 2.6 billion 09
JWS 37,167 681 million 24
THE OPD 5,600 100 million 5
Source: Individual websites of organizations.

These MFIs and RSPs operate with a broader donor base and work with multiple
donors for their microcredit programmes. Some of them manage several projects in
other social sectors such as livelihood, education, and health. The banks, however,

16
appear to have even higher investment and solid professional organizational
structure. Below is a list with details of microfinance banks in the district.

Table 4: MFBS: Active Loans, Portfolio and Branches


Microfinance Banks Active loans Portfolio Branches
Apna Microfinance Bank 34,465 4.5 billion 85
FINCA 96,571 6.2 billion 101
Tameer Microfinance Bank 234,261 9.3 billion 158
U Bank 22,254 919 million 38
Waseela/ Mobilink Microfinance 27,225 1.3 billion 41
Khushali Bank 468,369 12.2 billion 118
First Microfinance Bank 177,228 5.6 billion 109
Pak Oman Microfinance Bank 16,334 336 million 16

Source: Individual websites of banks.

OPD is a small organisation compare to other MFIs and RSPs but it has had two
distinct competitive advantages. Firstly, it enjoys a very close relationship with the
low-income communities, which is an outcome of its 25 years of social development
work in the city. Second, it is a competent organisation for delivering individual loans
to low-income entrepreneurs and therefore it has a strong market position because
other MFIs and RSPs provide group loans and do not address the needs of those who
prefer individual loans.

2.6 PROCESSES AND OPERATIONS

This section describes the OPD’s operation i.e. methods and delivery of financial
services, loan features, performance and measures taken for managing risks to
safeguard its loan portfolio.

2.6.1 LOAN METHODOLOGY

The OPD offers individual loans to low-income entrepreneurs and businesses. This
method softens the competitive environment7 in which OPD operates and liberalises
the capital market by removing the social costs attached to the group loaning
methods8 i.e. issues of individual privacy and cultural stigma associated with debt.
The OPD delivers its financial products through its network of five field offices in
Gujranwala district. 22 Sector Loan Officers (SOCs), five managers and five
accountants manage the loan portfolio of the five field offices. Each loan officer
handles a portfolio of 200 to 250 low-income entrepreneurs.

7
Other MFIs and RSPs in Gujranwala offers group loans
8
Lehner 2009

17
Marketing
individual /
group
meetings

Form
Recovery
issuance

Monitoring &
Evaluation
Disbursemen Form
t submission

Approval of Client's
loan financial
application and social
appraisals

The loaning process starts from holding individual/group meetings in the pre-
selected low-income communities where clients are provided with information on
financial products that the OPD offers. In addition, the OPD also attracts clients as a
result of referral from friends, extended family members and relatives. Clients willing
to apply for loans contact SOCs and visit one of the OPD’s five branch offices that The
provide them a computerised loan application form, after filling out basic
information. The clients are then provided with information and the paperwork
required for submission of the loan application form, i.e. CNIC, photographs, proof of
address (utility bill etc.) and profiles of personal guarantors. The clients visit the
branch office with the complete paperwork and submit their loan application form.

The OPD staff members carry out the clients’ financial and social appraisal including
collecting information on the poverty scorecard. Once suitability for the loans are
established, the loan application forms are forwarded to the head office for the
verification of the information. The monitoring and evaluation team verifies the
accuracy of the information and identifies the gaps. The Field Manager, then,
approves the verified applications and issues the cheques. The cheques then go to the
branch managers of the relevant field office who invite the clients to collect their
cheques. The clients are invited to collect the cheques along with two personal
guarantors and are given the repayment plan. The process, from loan application
submission to issuing the cheque, takes between 15 to 20 days. OPD has established
three channels-cash deposit in the relevant branch, through OMNI, and JAZZ Cash-
which its clients can use to make payments.

2.6.2 LOAN CHARACTERISTICS

The effective term for the OPD’s typical loan (98.2%), i.e. working capital and social
franchise loans, is 12 months while for a very few (1.8%), i.e. micro-enterprise loans,

18
this term is 12 to 15 months. Currently the OPD’s average loan size is PKR 26,717 for
men and PKR 26,306 for women, showing in the 2015-16 financial year. Clients have
to make repayments in 12 equal monthly instalments including the principal amount
and the service charges. The loans are designed in two cycles, i.e. clients who
complete one successful cycle are offered an opportunity to apply for another loan
with increased value in the 2nd cycle based on their needs and requirements as well as
subject to their successful social and financial appraisal.

Table 5: Product types and period of loan


Working Capital Social Franchise Loan Micro-Enterprise
Loan Loan
Period of loan 12 months 12 months 12 – 15 months
1st loan cycle Rs.10,000-30,000 Rs.20,000-30,000 Rs.30,000-50,000
2nd loan cycle Rs.31,000-50,000 Rs.31,000-45,000 Rs.51,000-75,000
Repayment procedure Every 30 days Every 30 days Every 30 days
Grace period 5 working Days 5 working Days 5 working Days
# of instalments 12 12 12 – 15

2.7 RECOVERY PERFORMANCE

The worth of the OPD’s outstanding portfolio at the end of August 2016 is PKR 84.66
million. Women hold a slightly greater share, i.e. 51% compared to men (49%). The
OPD’s 90% clients make regular repayments in time. However, 10% of the clients
have outstanding loans under different ageing buckets. Most prominently, 402 clients
(6.85%) have had outstanding loans for more than 6 months. Some of these loans are
a result of a few members of staff involved in embezzlements for which litigation and
court cases are filed and legal actions to recover the embezzled amount is underway.

Table 6: Ageing Bucket


Ageing Bucket Number of Clients Percentage
Regular 5,036 90.00%
1 to 30 days 220 3.33%
31 to 60 days 72 1.10%
61 to 90 days 42 0.47%
91 to 180 days 92 0.95%
181 to 365 days 194 2.52%
Over 365 days 208 1.64%
Total 5864 100.00%

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2.8 RISK MANAGEMENT

The OPD takes all standard measures to minimise risk to its microcredit portfolio.
The process of financial and social appraisal and use of poverty scorecard provided
from PPAF are some of the practices that are in place for risk management. In
addition, clients are asked to provide details of two guarantors, one from their
immediate family and one from friends, neighbours, relatives or extended family.
This provides social collateral to some extent, from people who are financially
excluded and have no access to the formal banking sector. For loans more than PKR
30,000, post-dated cheques are collected from clients as an additional measure of
risk management.

20
SECTION III: FINANCIAL PERFORMANCE AND STRATEGIC
PRIORITIES
The section reports the current financial performance of the OPD. This includes its
position on profitability, recovery, portfolio quality and efficiency and details the
strategic priorities for the next 12 months.

21
3.1 PROFITABILITY
The OPD has successfully covered its operating costs including personal and
administrative costs and has achieved operational sustainability. . Data for the past
two years indicate a profit of PKR 4.2 million in 2014-15 and 0.14 million in 2015-
16,
Table 7: Annual Income: Expenditure

2014-15 2015-16
Total Income 41,192,881 34,364,671
Total Expenses 36,912,731 34,220,817

The OPD has achieved the operational sustainability9 by reducing the management
cost i.e. uncompetitive compensation packages for employees.

3.2 RECOVERY PERFORMANCE

In 2013/14, the OPD achieved 99.32%. However in the last two years, (2014/15 and
2015/16) the recovery rates decline i.e. 95%. This rapid and undesirable change in
the recovery rates is a accumulated effect of high employee turn-over, financial
irregularities in the field offices, weak monitoring mechanisms, absence of staff
training and lower levels of pay and compensation.

3.3 PORTFOLIO QUALITY

The portfolio quality during past three financial years is given in the Table 8, below.

Table 8: Annual Portfolio Summary


Particulars 2013-2014 2014-2015 2015-2016

Total Disbursement 164,339,000 139,773,000 139,444,000


Disbursement Male 65,459,000 60,623,000 64,576,000
Disbursement Female 98,880,000 79,150,000 74,868,000
Disbursement (NO) 7,320 5,747 5,263
Disbursement Male (No) 2,858 2,497 2,417
Disbursement Female (No) 4,462 3,250 2,846
Loans are outstanding (No) 7,319 6,801 6,095
Total value of the portfolio (Rs) 99,647,980 83,129,666 90,872,571
Loan maturities (No) 4,313 6,265 5,969
Customer drop-out rate (%) 51.83 67.21 59.98
Average loan size (Rs) 22,451 24,321 26,495
Average loan size Male 22,904 24,278 26,717

9
It is important to note here that the OPD’s financial statements also take into account depreciation as well as
loan losses. For example, last financial year (2015-16) the OPD allocated PKR 2.86 million for loan losses and
doubtful debt while the depreciation amount for the same period is calculated to be PRK 1.1 million. Thus, the
OPD appears to achieve financial sustainability.

22
Average loan size Female 22,160 24,354 26,306
Recovery rate (%) 99.32 95 95
Portfolio at risk (%) 1.03 4.88 4.94
No. of Branches 5 5 5

Table 9: Portfolio At Risk (PAR) as on August, 2016


DESCRIPTION Portfolio At Risk (PAR) as Total Overdue
on August, 2016 Amount (PKR)
PAR Amount PAR (%)
(PKR)
On time Payment Portfolio 76,192,192
Late by 1-30 days 2,816,135 3.33% 463,587
Late by 31-90 days 1,326,998 1.57% 518,150
Late by 91-180 days 804,833 0.95% 583,450
late by 181-365 days 2,133,833 2.52% 1,630,500
Above 365 Days 1,385,931 1.64% 1,385,931
Total Portfolio At Risk (PAR) 8,467,730 10.00% 4,581,618
Total Portfolio At Risk > 30 Days (PAR > 5,651,595 6.68%
30 Days)
Total Reserves held for Bad/Doubtful debt/Loan Loss (Rs.) 6,737,172
Total Reserves held for Bad/Doubtful debt/Loan Loss as percentage of 8%
Gross OLP

Data available for the last financial year (2015-16) indicates that the total disbursed
amount is (PKR 139.44 million) and total value of the portfolio is PKR 90.87 million.
A total of 5,263 loans were disbursed in 2015-16 and 5,969 loans reach their
maturity. The recovery rate during the last financial year was 95% with the portfolio
at risk (PAR) at 4.94%.

3.4 STRATEGIC PRIORITIES FOR THE NEXT 12 MONTHS: STARTING FROM AUGUST
1 2016
ST

3.4.1 ACCOMPLISHING 100% RECOVERY

The OPD has already taken the following steps to address the problems that caused
decline in the recovery rate. The recovery process includes a risk of financial
irregularities at field level. The risk has originated from the practice of SOCs
collecting cash repayments from client and using them. Establishment of the simple,
transparent, and risk free financial system at field level is the key to improving
recovery. The OPD has taken several steps to accomplish desired goal, including
complete removal of the practice of cash handling at branch level, introduction of the
financial and social guarantee system for employees, implementation of the daily
reporting system and orientation/training programmes, and regular interaction of
the senior management team with SOCs. This OPD is committed to further refine and
develop a simple, transparent and risk free financial system with the help of PPAF

23
and other stakeholders, including other MFIs and RSPs. In addition to this, the OPD
plans to introduce competitive salary packages to attract professional and talented
individuals and to retain its experienced employees. To achieve this HR objective,
OPD has allocated a realistic budget in the business plan and has begun to explore
other income streams, grants and project funding from other donor agencies.

In the business plan, one of the key strategic priorities of the OPD is to introduce
competitive compensation packages and create self-actualisation opportunities for its
employees. The OPD plans to do it by implementing the growth strategy, which is the
core of the business plan. The OPD has already taken steps and considering to
borrow against its endowment fund and to develop OPD’s own microcredit portfolio.
This is at an early stage and will take some time to materialise.

3.4.2 EXPANDING THE OUTREACH

The OPD’s true potential lies with its ability to connect to its targeted communities.
This relationship goes back to more than two decades of uninterrupted association in
terms of numerous projects covering multiple development themes such as
education, health including its work on AIDs and sexually transmitted diseases
among high risk segments of the population in Gujranwala i.e. sex workers and truck
drivers, nutrition, gender, WASH and microcredit. Capitalising on its two distinct
competitive advantages (Knowledge of social development and expertise in
individual loaning), the OPD plans to expand its outreach, innovate new financial
products and methods of delivering them, and increase its portfolio, number of loans,
amount of loan, and active clients in the next three years. The OPD has taken key
steps to accomplish the desired results. The OPD has reviewed its loan methodology
and has taken several steps to improve its outreach, including designing and
implementing information dissemination campaigns, educational material (IEC)
related to loan process.

Currently, OPD is working on a marketing and communication strategy which it


plans to implement in 2017. This year OPD has taken several steps to improve the
loan and recovery processes. The aim is to provide secure, fast and affordable loan to
low-income communities and to cultivate the culture of branchless banking in the
low-income communities and to strengthen the financial discipline of OPD’s
employees. In so doing, OPD has given strategic priority to reducing the loan
processing time and to remove the practice of cash-deposit. In August 2016, OPD has
begun processing loan within the timeframe of 5 working days and has removed the
practice of cash-deposit. Instead, SOCs ensures that their clients regularly use OMNI
or JAZZ CASH as the only repayment method. 3.5.1. The OPD is also considering to
establishing a mobile branch to provide financial services in low-income areas in and
around Gujranwala city.

24
3.4.3 REDUCING CLIENT DROP-OUT RATE

The current client dropout rate is calculated to be close to 60% indicating that more
than half of the clients do not take second loan. The OPD has begun a process of
investigating the reasons and causes of this high rate of dropout. In the business
plan, retaining credit worthy clients and reducing the dropout rate are the OPD’s
strategic priorities, which will result in reducing the delivery cost of micro-credit,
improving the productive of micro-credit team and developing stronger relationship
between the OPD and its low-income communities.10 The OPD is also trying to
promote market assessment and planning based on evidence. For this purpose,
development of data collection mechanisms is in process to use information on
determinants of clients’ dropout and satisfaction.

3.4.4 PROFESSIONALISING EMPLOYEES

The management team based at the head office have required knowledge, skills and
experience, however, currently job role evaluation, preparation of job description and
job analysis is underway and will take a couple of months to develop a new structure
matching available competencies with newly developed job roles. OPD plans to
establish a Centre for Community Learning, Innovation and Citizenship that will
provide in collaboration with local, national, and international academic institutions
short training courses to its employees and entrepreneurs. The OPD has already
begun the process of exploring potential partnerships. The OPD plans to make the
centre a research, training and educational forum for all its stakeholders.

3.4.5 USING MANAGEMENT INFORMATION SYSTEM (MIS) CREATIVELY

In terms of technological resources, the OPD acquired and successfully implemented


an integrated Financial Information System (FIS) and Management Information
System (MIS). Both FIS and MIS are functioning flawlessly with all branches
connected with the network and head office can monitor performance data in real
time. The OPD plans to use this system to produce research reports which can be
used to improve the quality of the programme.

3.4.6 IMPROVING INTERNAL CONTROL

The OPD’s is going through a transformation and restricting to make the


organisation more accountable, efficient and effective. This would also encourage

10
A large number of studies provide evidence to support the assertions that high dropout rate makes it expensive
to deliver financials services to low income households10, retaining clients reduces administrative costs, default
risks and increases average loan balance as well as organisations’ productivity (Meyer, Graham & Pagura 2001).
Furthermore, the cost of recruiting new clients is higher than retaining old clients (Schreiner 2004). It is also
evident that both microcredit institutions and clients gain from a long term relationship (Silki 2013). It is also
understood that acquiring a new client cost 4 to 10 times more than retaining the existing client.10

25
appropriate reporting lines and delegation of authority, proper supervision structure
and monitoring mechanisms. The internal controls on loan disbursement and
recovery are being reviewed and improved processes are to be put in place by next
month. A monitoring team comprised of 5 people is recruited and is in a process of
further strengthening. The smoothing functioning of FIS and MIS provide effective
tools to monitoring the portfolio in real time and allow the management to generate
appropriate reports to closely monitor portfolio at risk (PAR) data around all ageing
baskets.

3.5 STRATEGIC ORIENTATION AND APPROACHES

The vision, mission and values, outlined in sub-section 2, provide the basis for the
OPD to remain and grow as a social development organisation in its outlook. This
social development orientation is in line with the aspirations and ideological
positions of its board, leadership and management. This means that the OPD sees
microcredit/microfinance as a strategic entry point for creating social value, in
addition to economic value During the life of this business plan (i.e. 2016-17 to 2018-
19) the OPD will continue to create economic and social value by strengthening its
micro-credit programme. For example, Since a large proportion of the OPD’s clients
are from retail sector, discussions are underway to acquire specialised knowledge and
skills in retail sector to engage with clients for not only provision of financial
products but to provide them knowledge, information and support in enhancing
entrepreneurial skills and ultimately their profitability and help them with
developing knowledge of socially responsible retailing practices.

26
SECTION IV: THE BUSINESS PLAN
This section spells out the OPD’s future plan for next three years i.e. between 2016-
17 and 2018-19. The OPD intends to take advantage of the current transition period
to consolidate its market position and to put forward an ambitious growth plan for
next three years. During next three years, the OPD while scaling up its operation
intends to restructure, rebrand and reinvent its microcredit operation.

27
4.1 MARKET / PROSPECTIVE CLIENTS

Gujranwala is a city district and administratively divided into 5 tehsils i.e.


Gujranwala City, Gujranwala Saddar, Wazirabad, Kamonki and Naushehra Virkan
and 8 towns. The district has high proportion of the population that has attended
school i.e. 78% males and 72% females (PLSM 2015). The estimated population of
the district was approximately 4.78 million in December 2015. The distribution of
population by town is presented here:

Table 10: Population Gujranwala District


Total Urban Rural
Gujranwala District 4,788,000 2,441,000 2,347,000
Wazirabad Town 874,000 269,000 605,000
Khiali Shahpur Town 706,000 401,000 305,000
Kamoki Town 566,000 199,000 367,000
Naushera Virkan Town 559,000 46,000 513,000
Qila Dedar Singh 655,000 540,000 115,000
Aroop Town 695,000 449,000 245,000
Nandipur Town 596,000 399,000 197,000
Cantonment 138,000 138,000 0
Source: Punjab Development Statistics 2015, Bureau of Statistics, Government of Punjab.

Based on the population numbers, it is estimated that there are 400,000 to 550,000
potential borrowers in Gujranwala district in line with PMN’s methodology and the
framework offered by Kraus et al., (Ghanghro and Khan 2015; Kraus et al. 2012). The
current microcredit portfolio of the district is approximately PKR 3.4 billion with
149,777 active borrowers (PMN 2016), indicating current penetration rate between
25% and 35% and an average loan size of roughly PKR22,700. Thus, there is still a
gap to reach out another 250,000 to 300,000 potential borrowers in the district.

An interesting comparative analysis of the perception of current economic situation


of the households in urban and rural areas in Gujranwala district presents a
pessimistic picture as compared to households in the whole Punjab province and at
national level in Pakistan. The graph below suggests that households in urban and
rural of the district are less optimistic about any improvement in their economic
years in past one year. More households believe that their economic situation in 2015
is either remains same, got worse or much worse since 2014.

The perception of households about their economic situation also indicate that there
are opportunities for MFIs to reach out the households, particularly the ones that are
outside the formal banking sector and offer them small loans to improve their
livelihood.

28
Graph – 1
Perception of Economic Situation of the Households in 2015 compared
with 2014 in Gujranwala district, Punjab and Pakistan

Better or Much Better Same Worse or Much Worse

60

50

40

30

20

10

0
Urban Rural Urban Rural Urban Rural
Gujranwala District Punjab Province Pakistan

Source: Punjab Development Statistics 2015, Bureau of Statistics, Government of Punjab.

4.2 PRODUCTS / METHODS

The OPD will continue working on the products it currently offers as outlined in
previous section. It will continue offering working capital, social franchise and micro-
enterprise loans. However, these three products will be fine-tuned in line with
market and client demands. Similarly, the OPD will continue using its branch office
model for disbursement and recovery of its loan products.

4.3 FEE STRUCTURE

The fee structure will be the same as the OPD is using now i.e. 20% service charges,
1% loan processing fee and 1% contingency fee with PKR 100 as form fee. However,
the average loan size will increase from its current level of over PKR26,000 to
approximately PKR 32,000, PKR 36,000 and PKR 37,000 by the end of 2016-17,
2017-18 and 2018-19 respectively.

4.4 OUTREACH

The current outreach of the OPD will expand in next three years from 5 branches to
10 branches. At the same time number of SOCs and clients will also go up
accordingly. The new branches will be open after carrying out feasibility in line with
its SOPs. The number of active client will be increased from its current level of 5,864
to 16,584 by the end of third year, a 282% increase in the total number of clients. The
number of SOCs will increase for 25 at present to 60 by the end of third year.

29
Table 11: Outstanding Loans and SOCs
2016-17 2017-18 2018-19
Number of loans outstanding 8115 11996 16584
Number of loan officers 36 48 60
No. of Branches 6 8 10

4.5 ORGANISATIONAL MICRO-CREDIT DELIVERY STRUCTURE

The organisational micro-credit delivery structure service will be improved. Each


branch will have 6 SOCs as compared to 5 at present. Thus, increasing one SOC in
each branch will offer an additional SOC portfolio with minimum operating costs.
The loan officers’ productivity will increase from caseload of 176 clients at present to
276 clients by the end of third year.

4.6 REACHING OUT

The OPD will actively market its product by developing IEC materials i.e. leaflets,
brochures and booklet in simple Urdu. In addition, pictorial materials will also be
developed for unschooled prospective clients. The OPD will retain individual loaning
as its unique selling point and will focus on developing as well as imparting
knowledge base to benefit its client in terms of helping them connecting to the
market effectively.

4.7 COLLABORATIONS AND PARTNERSHIPS

The OPD is interested in developing collaboration and partnerships with other sector
actors, institutions and donor agencies in Pakistan and abroad. The OPD will
strengthen its relationships with national network bodies in the sector as well as
engage with them and other MFIs operating in the country to learn from their
experience. The OPD will also seek memberships of national bodies and will
participate in events on various platforms.

4.8 LEARNING AND DEVELOPMENT

The OPD will establish a Centre for Community Learning, Innovation and Citizenship
(CIC) with an aim to initially provide orientation and training to its own employees.
Lack of understanding about the microcredit sector, community development
concepts and issues around poverty appeared to be some of the area where the OPD’s
employees’’ knowledge is deficient. The CIC will offer the OPD’s field staff with an
opportunity to improve its knowledge and understanding on these issues. The centre
will have its own separate learning and development budget and staff.

30
4.9 FINANCIAL PROJECTIONS

The financial projections are calculated for next three years based on certain
assumptions. The key assumptions for this business plan are the OPD’s plan to
actively scale up its microcredit operation by increasing its number of outstanding
loans from 6,353 at present to 16,584 in next three years with doubling the number
of branches from 5 to 10. The detailed assumptions include its loan portfolio, income,
budget (expenditure) including operational expenses such as salaries and other
expenses. These assumptions are presented in Note to Account in details on quarterly
basis for the next three years.

31
32
33
34
35
36
4.9.1 PORTFOLIO P ROJECTIONS

The PPAF’s outstanding portfolio is projected to grow form PKR 90.87 million at
present to PKR 271.94 million during the life of this business plan. In addition, the
assumptions presented above under Note to Accounts, also include constituting a
smaller OPD’s own microcredit portfolio from PKR 3.9 million funded by the
commercial borrowings against its equity pool including endowment and sub-
ordinate loan from the PPAF. Thus, at the end of third year of this business plan, the
OPD’s gross microcredit portfolio is projected to be approximately PKR326 million.

During the same period (2016-17 to 2018-19) the equity is projected to grow from
PKR44.5 million at present to PKR71 million by the end of third year. The OPD will
expand its microcredit operation from 5 branches to 10 in next three year. It will add
one branch this year (2016-17), two branches next year (2017-18) and another two
branches in 2018-19. The OPD will also increase one SOC in each of its branches
bringing the number of SOCs to 6, thus raising the total number of SOCs by the end
of year three to 60.

37
38
4.9.2 INCOME/EXPENSES PROJECTIONS

During next three years, the OPD’s income is projected to be PKR 47.63, PKR 76.98
and PKR 111.98 million in first, second and third year respectively. The major
proportion of income will come from services charges (approximately 78% to 80%)
while remaining 20 to 22 per cent will be contributed by loan processing fee, form
fee, interest on deposit, interest on investment and other income.

Graph – 2 OPD’s Projected Income for Next Three Years


100%
90%
80%
Other income
70%
60% Interest on Investment

50% Interest on Deposit


40% Form fee
30% Loan processing fee
20% Service charges
10%
0%
2018-19 2017-18 2016-17

In terms of expenses, salaries make the major part of upto 70% to 75% while
depreciation and other administrative expenses make the remaining part of the
operational expense. Among operational expenses, salaries will grow from PKR23.6
million in Year one to PKR 39.98 million in Year three. This is due to the fact that the
number of branches, SOCs and staff at the head office will increase to in line with the
business plan. In addition, salary structure will be revised gradually to make it more
market competitive.

Graph – 3 OPD’s Projected Operational Expenses


for Next Three Years

100%
90%
80%
70%
60% Depreciation
50%
Other administrative expense
40%
Salaries
30%
20%
10%
0%
2018-19 2017-18 2016-17

39
The total financial expenses are projected to be PKR12.31 million, PKR 27.29 million
and PKR 41.31 million for 2016-17, 2017-18 and 2018-19 respectively. The OPD at
present is reviewing its branchless banking options that it uses for mainly recovery
i.e. OMNI and Jazz CASH to reduce cost and to minimise the risk in recoveries.
Alternative to the branch less banking are getting repayments through bank account
for which vouchers can be printed in bulk and given to each client. This will save the
branchless bank projected accumulated cost of PKR 6.71 million in next three years.

Graph – 4 OPD’s Projected Financial Expenses


for Next Three Years
100%

80%

60%
Branch-less banking charges

40% Loan loss provision


Interest and fee expense
20%

0%
2018-19 2017-18 2016-17
-20%

The projected net income for next three year will be PKR1.44 million in year one
(2016-17), PKR12.61 million in Year 2 (2017-18) and PKR 23.64 million in year
three (2018-19).

40
41
4.9.3 CASH FLOW PROJECTIONS

The cash flow projections after adjusted for non-cash items for 2016-17, 2017-18
and 2018-19 are PKR 11.5 million, PKR24.95 million and PKR39.29 million
respectively. The quarterly cash flow projections are presented on the next page.

4.9.4 BALANCE SHEET PROJECTIONS

The projected asset and liabilities ratios will be 110%, 109% and 113% for 2016-17,
2017-18 and 2018-19 respectively.

The equity is projected to increase from PKR 44.5 million at present to PKR 71
million by the end of third year (2018-19) including endowment and sub-ordinate
loan of PKR17.6 and PKR 20 million respectively.

42
43
44
ANNEX 1: THE BOARD OF DIRECTORS
Name Designation Qualification Occupation Organization Year of Experience

Consultant, Educationist and Akhter Hameed Khan Resource


Mr. Fayyaz Baqar Chairperson MS Economics 39 years
Researcher Centre

Ms. Hina Inam General Secretary M.A. Philosophy Chief Editor and Writer Radio MF 103, Lahore 23 years

Mr. Basharat Rasool Treasurer FCA Chartered Accountants J.A.S.B (Chartered Accountants) 18 years

Mr. Shakeel
Member MPA Senior Banker Bank AL-Habib Ltd. 24 years
Hussain Memon
Youth Commission for Human
Ms. Shazia Khan Member M.A. Sociology Management Executive 24 years
Rights (YCHR)
Community Support Concern
Begum Shaista Jan Member MBA MFI Executive 32 years
(CSC), LHR
M.A. Philosophy & Chief Editor, Writer and Hamshahri Magazine, Lahore,
Mr. Shafqat Ullah Member 27 years
History Businessman Pakistan
M.A Philosophy, M.A. Soon Valley Development
Mr. Gulbaz Afaqi Member MFI Executive 36 years
Urdu Programme

MS Philosophy, Diploma Consultant, Educationist and Democratic Commission for


Ms. Tanveer Jahan Member 29 years
in Human Rights Researcher Human Development

45
ANNEX 2: OPD’S COMMITTEES

Audit and Finance Committee


1 Mr. Basharat Rasool (Chairperson), Chartered Accountant
2 Mr. Shakeel Hussain Memon (Member), Senior Banker
3 Mr. Shafqat Ullah (Member), Businessman, Writer and Chief Editor Ham Shahri
Magazine

HR Committee
1 Ms. Hina Inam (Chairperson), Chief Editor and Writer, Radio FM103, Lahore
2 Ms. Tanveer Jahan (Member), Consultant, Educationist and Researcher
Mr. Shazia Khan (Member), Senior Management Executive

46
ANNEX 3: OPD SUPPORT P ROGRAMME: THE BOARD OF DIRECTOR

Year of
Name Designation Qualification Occupation Organization
Experience
Consultant,
Akhter Hameed Khan
Fayyaz Baqar Chairperson MS Economics Educationist and 39 years
Resource Centre
Researcher
Chief Editor,
M.A. Philosophy Hamshahri Magazine,
Shafqat Ullah Member Writer and 27 years
& History Lahore, Pakistan
Businessman
MS Philosophy, Consultant,
Tanveer Democratic Commission
Member Diploma in Educationist and 29 years
Jahan for Human Development
Human Rights Researcher

47
ANNEX 4: OPD’S ORGANOGRAM

48
REFERENCES

Claessens, S., & Tzioumis, K. (2006) Measuring firms’ access to finance, World Bank manuscript, May 2006.

Ghanghro, A.K. & Khan, N. (2015) Estimating potential market size for microcredit in Pakistan, Pakistan
Microfinance Network (PMN), no. 27, December 2015.

GoP (2014) Pakistan Economic Survey 2013-14, Ministry of Finance, Government of Pakistan,
http://finance.gov.pk/survey_1314.html

Krauss, A., Lontzek, L., Meyer, J., & Frommelt, M., (2012) Lack of Access or Crowded Markets? Towards a
Better Understanding of Microfinance Market Penetration (August 23, 2012). CMF Working Paper Series, No.
01-2012. Available at SSRN: http://ssrn.com/abstract=2587014 or http://dx.doi.org/10.2139/ssrn.2587014

Lehner, M. (2009) Group lending versus individual lending in microfinance, Discussion paper no. 299,
Governance and the Efficiency of Economic System (GESY) / University of Munich, Germany.
http://www.sfbtr15.de/uploads/media/299.pdf

Meyer, R., Graham, D. and Pagura, M. (2001) Determinants of borrower drop out in microfinance: an empirical
investigation in Mali.

Nenova, T., Niang, C.T., & Ahmad, An. (2009) Bringing finance to Pakistan’s poor:A study on access to
finance for the underserved and small enterprises, The World Bank, May 2009.

PMN (2016) MicroWatch, Quarterly update on microfinance outreach in Pakistan, Pakistan Microfinance
Network (PMN), Issue 39, Qater 1 , January – March 2016.
http://www.microfinanceconnect.info/assets/articles/67c46230ff56934efe801fd0e1c4b25f.pdf, accessed on 6th
September 2016.

Siliki, AC., (2013) Why people dropout from microfinance institutions? Case study of an MFI in Mali
(Jyesigiso), Solvay Brussels School: Economics and Management.

Schreiner, M. (2001) Scoring drop out at a Micro lender in Bolivia, Center for Social Development. Washington
University in St. Louis.

World Bank (2016). “The World DataBank”. The World Bank, Washington, DC,
http://databank.worldbank.org/data/home.aspx, accessed 24 August 2016.

49