Transparency

A key Pakistan Microfinance Network (PMN) objective is to establish the use of performance measures and promote financial transparency in retail microfinance institutions (MFIs). The PMN created the Pakistan Microfinance Review (PMR) to help achieve these objectives.  The Review is published annually with statistics and analysis on the financial sustainability, operating efficiency, portfolio quality, and savings information of its practitioner members. Members self-report information and there is no independent verification. While the Review does not provide performance ratings, it does help members interpret their own programmes, set standards for the sector, and set examples for other institutions to follow.
Several PMN practitioner members are multi-service organizations which complicates the separation of costs associated with microfinance operations. While every effort has been made to standardize cost allocation, the cost figures and sustainability ratios may vary depending on how different organizations are structured and managed.
The inflation figures used in the PMR are those reported by the State Bank of Pakistan (SBP). Inflation has a significant impact on sustainability. The sustainability ratios of members that fund their operations primarily from pools of donor grant equity are more sensitive to inflation.