stakeholder engagements: key issues and recommendations pakistan microfinance network september 19,...
TRANSCRIPT
Stakeholder Engagements: Key Issues and Recommendations
Pakistan Microfinance NetworkSeptember 19, 2013
Presentation Outline
• Background
• Key issues identified
• Recommendations
Background
• Stakeholder consultations by PMN (July – Sept 2013)– Commercial banks involved in G2P payments– Provincial government departments in Balochistan,
Khyber-Pakhtunkhwa, Punjab & Sindh• Planning and Development, Finance, Health, Education,
Social Welfare, Labor, Zakat and Ushr, Bait ul Maal, PDMAs
• Provincial roundtables
Balochistan‒ Religious and Minority
Affairs: PKR 502 million
Scope of G2P Payments: Some Examples
KPK– Education:
• Three programs, totaling almost PKR 1 billion
– Health: • Two programs, totaling PKR 500
million• Health insurance program, EUR
10 million– Youth:
• Three programs, totaling almost PKR 1.1 billion
Punjab‒ Education:• School education: PKR 1.0
billion• Higher education: PKR 750 m
‒ Pensions: PKR 66 billionSindh• Income support program: PKR 2 billion
Enabling Factors
Government
Banks
Donors Recognition of benefits within Government
Banks have experience of working with the unbanked
Understanding of challenges and limitations
Key Issues Identified (I/III)
1. Policy direction on G2P Payments and use of technology needs to be developed at the highest levels
2. Who will be the ‘Champion’ within provincial governments?
3. One-size-fits-all – not going to work
PO
LIC
Y
Key Issues Identified (II/III)
1. Capacity of provincial government in evaluating and implementing technology based payments is limited
2. Lack of financial literacy and awareness is a curtailing factor
3. Thinness of financial infrastructure in certain regions
4. Business case for banks of focusing on ultra poor as a segment
EC
O S
YS
TEM
Key Issues Identified (III/III)
1. High verification costs to financial institutions (as required by regulations) are a limiting factor
2. Interoperability in branchless banking
3. Move towards biometric verification for enhanced transparency and accountability has its advantages but also challengesO
PER
ATIO
NA
L
Recommendations (I/II)
• National and provincial level policies on use of technology based payments for G2P programs may be considered
• Continued support from SBP and NADRA to facilitate banks in reaching out to the unbanked
• Donors and multilaterals should consider developing technical assistance programs for provincial governments
• Need to invest in financial literacy at a much greater scale and including the ultra poor as a target segment; co-ordination of efforts
Recommendations (II/II)
• Technical guide on the different payment technologies
• Exploring the deployment of biometric verification systems as a next step towards transparency and accountability
Thank You