Partner Description: 

Pakistan is on the brink of an energy crisis. Nearly 40,000 villages and almost half of individuals have no access to formal electricity services. Buksh Foundation, a microfinance institution in Pakistan, is attempting to address the critical need for access to reliable and affordable electricity among its clients. It is one of the few microfinance institutions in Pakistan with a clean energy program.

The depth of Buksh Foundation’s involvement in energy resulted largely in response to the underdeveloped state of Pakistan’s commercial energy sector. In order for its energy vision to be realized, Buksh Foundation coordinates various aspects of supply, not just end-user finance. This process includes product design, marketing, distribution, consumer education and after-sales service.

Buksh Foundation’s focuses its services on under priveleged men and women, who are largely excluded from microfinance services. The organization believes this is an important segment of society that plays an instrumental role in the economic livelihood and education of the family.  


A unique lending approach:

Buksh Foundation provides clean energy loans to small enterprises and rural households that struggle from inconsistent power supply. About 60% of Buksh Foundation’s clients are female.

Buksh Foundation’s solar energy loans facilitate client ownership of three different solar portable generators- a complete solar home solution, a solar fan kit and a solar lighting kit. Lamp stands, cords and mobile phone adaptors can all be plugged into the generators. Portable generators also include an AC adapter that provides users with the option of charging from the grid. All models have a one-year warranty and a five-year manufacturer warranty for the solar module with complete after-sales service for the clients.

Additionally, the organization offers training workshops aimed at capacity building, empowerment, enterprise creation, women's rights awareness and vocational training.


A note on Buksh Foundation’s portfolio yield: 

We care deeply about the cost that Kiva borrowers pay for their loans, which is why fair pricing is a core part of our initial due diligence process for Field Partners. With Kiva's 0% capital, many of our Field Partners are also able to add additional value to their loans by reducing interest rates, offering non-financial services or creating new loan products.

For partners with reported portfolio yields or average APRs higher than 50%, Kiva takes steps to check that the high rates are justified by the impact of the loans. Kiva also verifies that the partner is not generating unreasonable profits or paying inflated salaries, and that the partner’s elevated operating costs are justified by its operating environment and/or the design of its loan products.

We seek to support loans that don’t impose an unjustifiable cost burden on hard-working borrowers. We nevertheless recognize that in order to reach vulnerable and excluded people with high-impact products and services, some of our partners incur high costs that necessitate charging higher-than-average costs to borrowers in order to allow for sustainability and scale. 

Factors that drive up the costs that this partner organization charges its borrowers include:

  • They operate in a market with high inflation—averaging 10% from 2011-2013, which means that the rates you see on Kiva are overstated, since loans are given in local currency, which lost value much more quickly than the U.S. dollar.
  • They pay high interest rates on the loans they take from banks and other funders, given the market in which they operate. This means they need more support from innovative sources like Kiva to reduce costs and pass savings on to borrowers.
  • They’re a small company or organization that hasn’t yet achieved the scale and efficiency necessary to reach sustainability and reduce pricing, but the impact of their services merits the opportunity to prove their business model.
  • They work extensively in rural areas, which requires their employees to engage in costly travel to find and serve their clients.


Repayment Performance on Kiva

    This Field Partner All Kiva Partners
  Start Date On Kiva Feb 27, 2015 Oct 12, 2005
Total Loans $24,300 $937,965,025
Amount of raised Inactive loans $0 $498,200
Number of raised Inactive loans 0 431
Amount of Paying Back Loans $24,300 $143,328,850
Number of Paying Back Loans 74 175,425
Amount of Ended Loans $0 $794,137,975
Number of Ended Loans 0 994,902
Delinquency Rate 100.00% 7.93%
Amount in Arrears $16,417 $7,433,246
Outstanding Portfolio $16,417 $93,783,450
Number of Loans Delinquent 74 19,274
Default Rate 0.00% 1.40%
Amount of Ended Loans Defaulted $0 $11,137,050
Number of Ended Loans Defaulted 0 31,506
Currency Exchange Loss Rate 0.00% 0.46%
Amount of Currency Exchange Loss $0 $4,278,396
Refund Rate 0.00% 0.63%
Amount of Refunded Loans $0 $5,887,300
Number of Refunded Loans 0 5,924

Loan Characteristics On Kiva

    This Field Partner All Kiva Partners
  Loans to Women Borrowers 85.14% 75.18%
Average Loan Size $328 $401
Average Individual Loan Size $328 $634
Average Group Loan Size $0 $1,772
Average number of borrowers per group 0 7.8
Average GDP per capita (PPP) in local country $4,700 $5,898
Average Loan Size / GDP per capita (PPP) 6.99% 6.80%
Average Time to Fund a Loan 2.37 days 6.93 days
Average Dollars Raised Per Day Per Loan $138.57 $57.86
  Average Loan Term 13 months 11.1 months

Journaling Performance on Kiva

    This Field Partner All Kiva Partners
  Total Journals 0 486,610
  Journaling Rate 0.00% 41.50%
  Average Number of Comments Per Journal 0.00 0.05
  Average Number of Recommendations Per Journal 0.00 1.20

Borrowing Cost Comparison (based on 2012 data)

    This Field Partner Median for MFI's in Country All Kiva Partners
  Average Cost to Borrower 54% PY 33.00% PY 26.04% PY
  Profitability (return on assets) -28.1% 1.5% -0.31%
  Average Loan Size (% of per capita income) N/A 16.00% 17.73%

Country Fast Facts

Field Partner Staff

Narmeen Afzal
Iftkhar Mehmood
Saba Shakeel
Danyal Tirmazi