Maheen Saleem and Aban Haq wrote an article entitled, “Microfinance Sector’s Consumer Protection Initiative,” published in the February issue of Business Recorder. The authors first summarize the rapid development of the microfinance industry in Pakistan. They then highlight how increasing competition in the microfinance industry can lead to the use of unethical and illegal practices by organizations in order to gain a competitive advantage.
They contend that these facts, combined with the characteristic vulnerability of microfinance recipients, demonstrate the need for institutionalized consumer protection. Accordingly, Pakistan Microfinance Network (PMN), an association of professional organizations in the field, has laid out a set of guidelines and principles for the treatment of microfinance clients called the Code of Conduct for Consumer Protection. The Code was officially launched on the 26th of January, 2009. The full text of the article is available at:
http://www.brecorder.com/index.php?id=890801&currPageNo=1&query=&search=&term=&supDate=
With a growth rate of 45 percent over the past three years, Pakistan’s microfinance industry has emerged as one of the fastest growing finance sectors globally, reaching 1.9 million clients as of September 2008. Product diversification has taken root, and savings and insurance uptake has surged.
