Responsible Finance Forum

Bringing Client to the Centre: A consolidated report on client protection practices in Pakistan’s microfinance sector

Saba Abbas
30 December 2015
Source:  Pakistan Microfinance Network

This collated “State of Practice in Client Protection” report documents and consolidates
findings from seventeen Client Protection assessments of Pakistan Microfinance
Network’s member organizations. These assessments were conducted over a
period of three years (2013-2015) under the Client Protection Initiative (CPI).

The Client Protection Initiative (CPI) was a 3-year project funded under State Bank
of Pakistan (SBP) Financial Inclusion Program (FIP), which kicked off in January 2013
and ended in March 2015. The project consisted of two components:

Pricing Transparency: promoting responsible and transparency pricing practices
among microfinance practitioners (MFPs) in Pakistan. This component was carried
out through partnership with Microfinance Transparency (MFT).

Client Protection Monitoring: conducting client protection monitoring through
third-party assessments of PMN member MFPs to ensure that these MFPs are complying
with global bench-marks for client protection, offering practitioners a client-
focused lens with which to view their institutions and to adequately fill any gaps
highlighted. This component was carried out through partnership with the Smart
Campaign (SC). Overall, nineteen institutional assessments were completed till May,
2015, providing us with a unique opportunity to gauge the compliance levels vis-àvis
client protection principles in Pakistan.