Details

Case

Microfinance at Family Planning Association of Pakistan (A)

Naim Sipra

INDUSTRY : Microfinance

AREA : Finance

ORGANIZATION : Family Planning Association Of Pakistan

LENGTH : 23

LUMS No : 02-588-2002-1

PUBLICATION YEAR : 2002

KEYWORDS:

Microfinance,Family Planning,Association,Pakistan,FPAP,Institution,Financial Services

DESCRIPTION:

Microfinance, the providing of credit to the poor for self-employment and other financial and business services, had been popular among the development circles for the last two decades as a means of poverty alleviation. Based on the experience of nearly 7,000 microfinance institutions around the world, which cater to 16 million clients, it had been demonstrated that it was possible for financial institutions to provide financial services to the poor in a sustainable manner. The Family Planning Association of Pakistan (FPAP) was a new entrant in the area of microcredit and their main donor, for this program, Pakistan Poverty Alleviation Fund, wanted it to become self-sustaining within four years. The main issue in the case was whether it was possible for FPAP to become self-sustaining in such a short time.

LEARNING OBJECTIVES:

1) To present in detail a microfinance project which may be used by other NGO's for duplication. 2) To use the case as a vehicle to discuss the various issues of provding microfinance as a means of development. 3) To compare and contrast microfinance from traditional commercial lending by banks. 4) To compare traditional capital budgeting rules with rules for selection of projects at the micro-level. 5) To present a relatively simple example of forecasting that may be used to determine sustainability of a project.

SUBJECTS COVERED:

Finance