"We are now independent from our husbands."

BRAC started its microfinance program in Pakistan in August 2007 with 12 branches in the North-West Frontier Province (NWFP), an area that borders Afghanistan and one of the riskiest provinces for NGOs to operate in. A BRAC branch manager, Ghazala, comments: I am happy that BRAC came to Peshawar in NWFP. There are great opportunities here for women, especially for widows. It is a good first step for them to improve their lives. I have seen in Bangladesh what BRAC does in microfinance, and BRAC Microfiance is really the only alternative that the women in our province have. Banks are not accessible to women here.”

When first starting out, overcoming the social hurdles to start a microfinance program was not easy. As Ghazala recalls, “When we first got started in Peshawar with door-to-door surveys, many women that we visited in Peshawar were afraid. They were afraid that the information was going to the police. One credit officer was chased out of a home by a dog.” However they were persistent. “We explained to them that we are not working with any police. We told them that we are native to this area, we live here, and our fathers live here too. This helped to start getting clients to trust us.”

After the trust barrier was overcome, it has not very difficult to convince husbands to let their wives become BRAC clients, even in a very conservative, male dominant society of North West Frontier Province. “Husbands know that if the wife generates income, the burden of supporting the family gets halved. They can also afford to send their children to school,” says one Credit Officer in Peshawar.

“Our work environment is like home because it is based in our community,” says Atifa; she is the branch manager in Chamkani, Peshawar. “We spend most of our day seeing borrowers, and there is no problem in our mobility because everyone we serve is female, and they know us well. Everyone is within walking distance. Everyone is a close part of this local village. Word of mouth spreads very quickly. Everyone knows us and trusts BRAC.”

One client served by BRAC in Peshawar is Bahat Zaree, a widow. She has seven children, ranging in ages from 2 to 12. She became a BRAC microfinance client to build her family’s livelihood after her husband passed away. With a BRAC loan, she started a business to sell cosmetics, door to door. Considering that women in Peshawar are customarily restricted from leaving their homes, she provides a needed service by bringing products for sale to people’s homes. “I carry all my inventory in a basket on my head. Sometimes my son carries extra inventory and walks with me house to house. I visit about 20~25 houses per day, started at about 8:30 in the morning. I make about 200~300 rupees in profit per day. My children are now eating better, and now three of my children are in school. I want more BRAC loan to grow my business.”

Another client in the same area, Liaqat Bibi, already received her third loan from BRAC. “Before I used to be a day laborer, cleaning homes and washing clothes. Now I am independent. With my first loan I helped my son start a seed store. With a second loan, I bought a donkey cart so my son could be a transporter of cargo and people. With the third loan, together with the money from selling off the donkey cart, my family rear cattle at home, selling off its milk. Life used to be very messy before. Now, I’ve been able to marry off my daughters and send my remaining school-aged children to school. I want to open a proper farmhouse to become a large milk wholesaler. I will keep my children in school longer. I want to take out more loans from BRAC.”

Apart from the traditional businesses such as embroidery and cattle raising, BRAC clients in cities have entered into more unique businesses. Yasmin in Lahore has yarn recycling business. She obtains old sweaters and unravels them into balls of yarns. She then twines different strands of yarns to a thicker and tougher string for use as ropes or making hammock beds (a common sleeping surface in Pakistan). “The sale price of my recycled yarn is 3 to 4 times greater than the material costs (the old sweaters). From my business, I save about 6000 rupees per month, after living expenses. My school-age daughter now attends school.”

Wherever they are, women who are BRAC clients have a greater effect on making their family members more productive. “With profits from my grocery store, I was able to give my son money to start a barber shop.” Says Zubaida from Lahore. In Zubaida’s same neighborhood, Irshad Bibi says, “My husband quit his low-salary job to help me full time. My henna business our family busy and creates enough income to support all 9 of us.” In Peshawar, Rabiya employs her sons for her snacks business. “I make snacks at home and sell them to canteens of local schools. With profits from my business I purchased two rickshaw cycles so my sons can take the snacks I make at home and sell them at schools.”

With only a short history in Pakistan, BRAC microfinance is working well. It has the loyalty of staff and members. Saima Mukhter, branch manager in the Qunchi Ammar Sadhu Branch in Lahore, says “I like the working conditions here. I like that fact that all staff members are women and we serve only women clients.” Sabrina, another branch manager. “I want to make a career at BRAC.”

For clients, the microfinance service revolving around the VO system makes BRAC an attractive microfinance partner. One client says “Applying for a loan at BRAC is simple, and the loan sizes are small. The service charges are lower, too. BRAC’s weekly installment system really makes it easy for us to repay the loans.” The VOs also serve as social support structures. It is a space in which members freely help and teach each other. Any problem a member faces – be it with the business or family – members openly discuss them and offer means for help.”

Just like every VO meeting in Bangladesh, the VO meetings in Pakistan also begin with the reading of the 18 promises. Credit officers notice marked changes in life routines of the women they serve. “People know about the merits of the messages behind the 18 promises, but by reciting it weekly behavior change is happening,” says one officer.

One such example is a collective action taken locally by all members of one VO based in Lahore. “Our members are also taking cleanliness and hygiene more seriously, which is one of the important messages behind the 18 promises. The members of one VO discussed how clogged overflowing gutters make their living conditions very unsanitary and make their children sick all the time. So one day everyone in this VO came together and cleaned it out on their own. Normally, it is the responsibility of the local government to clean out gutters, but these women took matters into their own hands.” One client in Lahore says “No one else does VO meetings. We get a lot out of these meetings.”

VO members share for discussion every problem that arises, be it in the business or in their families. They are happy with BRAC staff. “The BRAC officers are like our daughters,” says one client in Multan.

-Malik Rashid