SBI and the United States Agency for International Development (USAID) launched the WHAM project (Widening Harmonized Access to Microfinance) in May of 2005 to support broader financial services industry development and the availability of financial services for clients in the “missing middle” – those individuals who live slightly above the traditional poverty thresholds for microfinance, but remain below the income levels supported by the traditional commercial financial sector. These goals are now supported by activities in three main areas:

• downscaling commercial banks to effectively provide smaller loans to lower income clients and entrepreneurs,
• upscaling microfinance institutions to provide increased access to financial services to clients slightly less poor than traditionally targeted microfinance markets, and
• strengthening the microfinance Industry through improved sharing of industry information, greater transparency, improved public awareness and an enhanced policy and regulatory environment.

Resources
Technical assistance for the WHAM project is funded for three years by $5 million in funds from USAID. As of November 2005, this is complemented by $400 million in capital commitments from financial institutions in Pakistan for investment in the MSME sector.

International partner
USAID on behalf of the U.S. Federal Government works in cooperation with U.S. and international partners to improve economic conditions for people around the world. (www.usaid.gov)

Regional and local partners
The Microfinance Center/CEENIS, the leading regional microfinance network provides training, lobbying and advocacy, and capacity-building to more than 86 MFI members and associate organizations. (www.mfc.org)

The Pakistan Microfinance Network, the national association for microfinance in Pakistan, which has been active in influencing the microfinance sector since 1997 in the areas of policy advocacy, capacity-building, and industry reporting and transparency. (www.pmn.org.pk)


Industry-Wide Initiatives

Training
Increase support to build a more effective set of Capacity Building service providers who will work with a broader range of institutions.

Coordination
Promote access to enhanced transparency and accountability of information to strengthen and speed the entry of financial service providers into new markets and support industry-wide initiatives.

Awareness Building
Communicate with targeted audiences on the socio-economic value and importance of building new financial service markets for economically-active, low income individuals in Pakistan.