Pakistan In Focus-Microfinance recoveries stall.

The microfinance sector of Pakistan is currently undergoing a recovery from the dent endured during the Covid-19 lockdown. The sector, which had posted a steady growth over the past few years, recorded a decline in 2020.

The Covid-19 pandemic was the primary reason behind the downturn because business activities came to a standstill in the first couple of months following the virus outbreak in the country.

Industry experts claim that the sector is currently in hot water as a majority of borrowers have not been able to repay loans due to little or no functioning of their businesses.

'Different banking and nonbanking institutions are able to recover their loans but the pace is slow since this sector caters to the low-income...