Social Impact Assessment of Microfinance Programmes - weman

• Provide credit for the expansion of the existing micro-enterprises in urban
communities
• Provide credit for agro-inputs in rural areas
• Strengthen the capacity of NGOs and CBOs to support micro-enterprises in the
area through guidance and training
• Provide lines of credit to trained NGOs/CBOs
OCT opted for a different paradigm for microcredit instead of seeing microcredit as a
direct tool for poverty alleviation. Contrary to other institutions, it solely provides credit
to facilitate movement of entrepreneurs poor into better economic and social conditions.
Consequently, it has not engaged in identifying the poorest of the poor or empowering
women for instance, to bring about gender equity. OCT specifically focuses on equity
and how relevant opportunities can be made available to those who put efforts.
This approach is in line with OPP’s self-help doctrine where individuals and communities
are encouraged to take charge of their own lives. OCT management explains that the
approach is responsive to the dynamics of ‘market economy’ because ‘credit is not a
welfare activity.’ Therefore, OCT focuses on facilitating its clients and partners in better
functioning in the market economy by making them self-reliant, competent and
strategically savvy.
From 1987-1991, OCT solely provided credit services to people based in Orangi with
functional enterprises. In 1990, M. A. Imtiazi, Secretary General of BCCI (now INFAQ
Foundation), urged OCT to extend help to micro-entrepreneurs living in areas outside
Orangi. Simultaneously, the World Bank selected OCT as one of its major microfinance
projects. Since then, INFAQ Foundation has donated Rs. 27.85 million and World Bank
Rs. 8.95 million as revolving fund. These donations made it possible to issue loans to
small entrepreneurs living in Karachi, to small farmers, herders and traders of Karachi
villages and to NGOs in districts of Sindh, Punjab and NWFP.
OCT does not envisage any major expansion in its direct operations, geographical reach
or client base. It works with a carefully selected and focused client base within Orangi,
with just a single office located in the building of OPP-RTI. The total loan disbursed in
Orangi between 1987- August 2006 amounts to Rs. 157,760,184 to 9,508 units. Out of
35000
34943
30000
25606
25000
21757
20000
Served Units
15000
10000
9337
8073
13684
11922
13186
Closed Units
Open Units
5000
0
1264
Orangi Outside Orangi Total
2