Promoting Inclusive Markets and Financial Systems
Pakistan's microfinance industry has grown and is emerging as a mature sector on the global microfnance horizon. However, the country and the sector is vulnerable to natural disasters that can negatively impact the growth and stability of financial inclusion. This paper examines the risks of natural disaster to the microfinance industry, which threaten not just the growth and sustainability of the industry, but also to the improvements in clients’ lives. Natural disasters have increased in Pakistan in recent years and have affected the microfnance sector adversely. To that end, this paper takes a look at the effect disasters on the industry and provids recommendations for managing this risk.