Pakistan Microfinance Investment Company (PMIC), a national-level apex institution for microfinance providers in the country and KFW, a German government owned Development Bank hosted a launch ceremony of their program called PRIME – PMIC-KfW Renewable Energy Initiative through Microfinance that aims to support the financing of quality Pico PV and Solar Home Systems for households in poor grid and off-grid locations in the rural and peri-urban areas of Pakistan.
PMIC believes in improving the lives of the economically poor through financial and advisory services that create employment and income opportunities. For years PMIC and its shareholders (Pakistan Poverty Alleviation Fund -PPAF, DFID through Karandaaz Pakistan and the German Development Bank KfW) have collaborated to address deep-rooted issues that hinder advancement towards prosperity. The PMIC-KfW Renewable Energy Initiative through Microfinance (PRIME) is yet another milestone in this conducive partnership. PRIME is a Euro 15 Million loan program that will be used to finance Solar Home Solutions (SHS) to the poor and off-grid areas in Pakistan for 200,000 households, thereby advancing the 7th Sustainable Development Goal of ‘Affordable and Clean Energy for All’.
The program will build capacity of microfinance providers, catalyze quality production and distribution of solar products, and develop a responsible financing mechanism enabling the microfinance sector of Pakistan.
A diverse group of stakeholders attended the launch event, drawing a crowd of over 150 including dignitaries, regulators, delegates from the private sector, development agencies, government, commercial banks, development rural support programs, microfinance providers, local and international NGOs among others. The initiative highlighted the importance of this growing sector in addressing the energy access gap and access to finance, pressing needs in Pakistan.
Yasir Ashfaq, CEO PMIC added that ‘PMIC is committed to delivering sustainable financial services, PRIME focusses on provision of quality verified solar home solutions is definitely our priority with the aim to contribute towards climate change and sustainable development’.
In her address to the audience Dr. Vera Molitor Project Manager KfW reiterated KfW’s commitment to the financial sector and renewable energy solutions for the underserved with the overarching objective to contribute towards climate change.