Mian Zahid Hussain, President of the Pakistan Businessmen and Intellectuals Forum (PBIF) and former Provincial IT Minister, emphasizes that microfinancing is crucial for Pakistan’s economic revival, especially for low-income segments and women. However, challenges such as insufficient capital, uneven loan distribution, and high interest rates limit its potential.

As of December 2025, the microfinance sector’s gross loan portfolio reached Rs 858.50 billion with 13.39 million borrowers, but access for employment-generating activities remains limited. Notably, only Rs 4.08 billion went to the manufacturing sector, while Punjab received Rs 300.54 billion, compared with Balochistan’s Rs 7.19 billion—highlighting regional disparities.

He also raised concerns over high Non-Performing Loans (NPLs) at Rs 48 billion and a negative Capital Adequacy Ratio of -1.2%. Although the sector’s pre-tax loss reduced from Rs 25 billion to Rs 2 billion, the risks remain.

Hussain welcomed the State Bank of Pakistan’s (SBP) credit guarantee initiatives for women and farmers but argued for higher coverage of 50%. He called for larger lending volumes and a 6% reduction in microfinance markup rates, pushing a shift toward production and self-employment to strengthen the national economy.