Pakistan has a population of about 179.2 million, and around21% of Pakistan’s populationlives on less than USD 1.25/day. Aroundone-thirdof the adult population does not use any type of financial products or services by formal or informal providers. This proportion is higher for rural inhabitants, females, and people residing in the provinces of Balochistan and Khyber-Pakhtunkhwa (KP).
The State Bank of Pakistan is the central bank. As per EIU’sGlobal Microscope on the Microﬁnance Business Environment 2013, Pakistan’s microfinance industry is ranked at third position. Pakistan is one of the few countries in the world that have a separate legal and regulatory framework for microﬁnance banks. The country is generally considered to have one of the most enabling environments for microﬁnance regionally and globally.
The State Bank of Pakistan mandates that all microﬁnance banks educate their clients on the terms and conditions of all their products and institutionalize a procedure for dealing with client complaints.