Due Diligence Trip in Pakistan

In the world of impact investing, making informed decisions is crucial to ensure that capital is channeled into initiatives that create a positive and lasting difference. A key aspect of this decision-making process involves conducting thorough due diligence to gain deeper insights into the organizations and individuals being supported. Recently, two of our investment analysts in Pakistan, Aastha Dawani and Abdul Ijaz embarked on a due diligence trip in Pakistan, where they had the opportunity to visit MFIs and meet with end clients. This journey offered them a unique perspective on the impact of EQ’s investments and provided valuable lessons on the power of financial inclusion in a developing nation.

They visited five end clients, one in Lahore and the rest in the rural village of Adda Gamber. In Gamber, two female clients operated small shops where they sold fast food, fried items, grains, and also provided shoe repair services. They had acquired loans from Kashf to purchase stock for their respective businesses.

Abdul and Aastha pose alongside a client specializing in snacks and fried delicacies.

Aastha and Abdul capture a moment with a client who offers a diverse range of products, including various flours, rice, pulses, and other grocery essentials. In addition, she sources and sells shoes from urban areas and offers shoe repair services.

The other two clients in Gamber had taken livestock loans acquiring the animals to improve their livelihoods. These clients had multiple sources of income from dairy products to farming. One of these clients had previously also utilized Kashf’s health insurance program, which supports clients in medical emergencies.

Animal owned by Kashf’s livestock client.

Aastha and Abdul alongside a client who secured a livestock loan to invest in animals, enhancing their livelihood and expanding their dairy product sales.

Abdul and Aastha with a client who has availed both a livestock loan and medical insurance from Kashf.

 During their due diligence trip in Lahore, they met Amina Sajjad who had obtained a school loan from Kashf. She used this loan to purchase furniture for her school, Amina Model School, which she has been managing since 1985. Notably, this client has been a loyal customer of Kashf for over a decade and does not have any outstanding loans from other entities. She had also participated in Kashf’s training program, where the Kashf team provided training to teachers on various subjects, including financial literacy. Additionally, Amina received an additional training session from Kashf in October 2023. 

Class 1 students of Amina Model School.

 KG Classroom in Amina Model School with children studying alphabets.

Amina Model School Front Gate.

This due diligence trip underscored the importance of impact investing and financial inclusion. It served as a testament to the enduring resilience and determination of Pakistan’s underserved communities and the dedication of the MFIs that serve them. This journey was a testament to the power of impact investing in transforming the lives of individuals and communities in developing nations, and it reinforced the notion that financial inclusion is a catalyst for change.