Micro-loan disbursements go up 14pc

The disbursement of microfinance loans increased 13.7 per cent in April-June on a quarterly basis after flat-lining in the preceding three-month period. Micro-loan disbursals in the second quarter of 2022 totalled Rs153.1 billion, up from Rs134.7bn in the first quarter of 2021, the latest data released by the Pakistan Micro­finance Network (PMN) shows. However, the increase was 38.5pc on a year-on-year basis. According to the commentary by the PMN analysts, despite political and economic uncertainty, the microfinance sector posed resilience as a majority of indicators witnessed growth. The double-digit increase in disbursements came alongside a 7.5pc increase in the gross loan portfolio (GLP), which amounted to Rs448.6bn. Loan disbursements are fresh credit extended in the three-month period while GLP accounts for the entire outstanding principal owed by existing clients. GLP increased 26pc on a year-on-year basis.