EU-funded PAIDAR programme: Financing set to go up to Rs4.2bn
KARACHI: Financing under Phase II of the EU-funded Poverty Alleviation and Inclusive Development Across Rural Sindh (PAIDAR) programme is set to increase from PKR 200 million to PKR 4.2 billion to expand financial access and promote inclusive development in rural Sindh.
It was announced in the 10th annual Microfinance Conference (AMC-X) organized by Pakistan Microfinance Network (PMN) in collaboration with the United Nations Industrial Development Organization (UNIDO) under PAIDAR programme.The two-day conference marked a decade of AMC as a national platform for policy dialogue, partnership and industry collaboration.
A major conference outcome was the expansion of the PAIDAR guarantee-based financing facility with the National Credit Guarantee Company Limited (NCGCL). Under Phase II of PAIDAR, participation will also expand from three to eight financial institutions.
The programme will reach borrowers across Larkana, Badin, Thatta, Sujawal and Tharparkar, with women targeted for at least 50 percent of allocated financing. NCGCL will provide risk-sharing support for direct microenterprise lending as well as guarantees for commercial bank and DFI credit lines to MFIs, supported by a €2 million grant under EU funded UNIDO PAIDAR programme for beneficiary identification, technical assistance and mark-up support.
Another outcome was the signing of a PKR 1 billion financing facility between Pakistan Microfinance Investment Company (PMIC) and National Rural Support Programme (NRSP) under the PMIC–KfW Renewable Energy Initiative through Microfinance (PRIME) Programme.
Addressing the conference, Sindh Chief Minister Syed Murad Ali Shah has stressed the need to shift Pakistan’s financial inclusion agenda from basic access to financial services towards providing quality, relevant and client-focused products tailored to people’s income levels, seasonal needs and risk profiles.
The Chief Minister also welcomed the launch of the PAIDAR Innovation Labs, which will bring financial institutions and rural enterprises together to co-design and test products for underserved markets in Sindh. The initiative builds on PAIDAR’s wider work on rural enterprise development, risk-sharing and access to finance
under the theme “Pathways for Inclusive Growth: Unlocking Synergies,” discussions focused on moving beyond financial access towards client progression, resilience and measurable economic outcomes, particularly for women, farmers, microenterprises and underserved rural communities.
Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb virtually addressing the conference has underscored the importance of financial inclusion in Pakistan’s transition from macroeconomic stabilisation to sustainable economic growth, highlighting its role in expanding access to financial services and supporting broader economic participation.
Amir Khan, Chairman PMN and President & CEO, HBL Microfinance Bank, called for microfinance to be integrated into the wider financial system.“The principle behind everything to follow is to mainstream microfinance into the financial ecosystem, not a parallel track,” he said.
Khan stressed that the sector’s next decade should be judged not only by outreach but by whether clients are able to progress towards stronger businesses, assets and financial independence.
On Day Two, Jeroen Willems, Head of Cooperation of EU Pakistan, addressed the conference virtually.Marking ten years of AMC, PMN reaffirmed its role as a convening platform for the partnerships, policy dialogue and collective action needed to turn financial inclusion into inclusive economic growth.
In a fireside discussion, Saleem Ullah, Deputy Governor, State Bank of Pakistan, similarly stressed the need for customer-centred innovation, commercial sustainability and a shift from measuring access towards meaningful financial inclusion.
Copyright Business Recorder, 2026