e-MFP
European Dialogue, N°08, 2015
INTEGRATION OF NON-FINANCIAL SERVICES Awareness raising, social mobilization, training and skills (i.e. TVET), and linkages are provided as non-financial services. MO has an agreement with IRM to provide training and skill enhancement. Youth become bankable as MO encourages them to open up bank accounts and educates them on book keeping and managing financial records through various marketing tools such as demonstrations, documentations and publications. Through these services, young people have benefited from: • Advocacy in the field of employment; • Financial literacy support services; • Awareness of human rights; • Social awareness; • Advantages in health and education; • MO is providing the loans and technical support for basic and higher education at rural and urban level to enhance human capital that leads to economic empowerment. SCALABILITY & SUSTAINABILITY The above services have scaled over time. YEEP was launched with MO’s own funds but achieved scale through the partnership with IRM and the use of funds from the Pakistan Poverty Alleviation Fund (PPAF), which is the major donor providing credit lines to MO. The credit line started at NKR 5 million (USD $50,000) in 2011, and now stands at PKR 125 million (USD $1,2 million) per year. The availability of these funds enabled them to meet the requirements of youth loans and scale the initiative. The program started in a village, of one of the tehsils, of Chakwal district, but has since been replicated in 253 villages of 30 union councils in three tehsils of the district. Additional information on the MO youth loan product can be found below in Table 2. As far as sustainability is concerned, the organization has been able to reach the level of 100% Operational Self Sufficiency (OSS). MO has been able to attract endowment fund of NKR 21 million (USD $200,000) from the donors, which can be invested in the youth program. The other source of revenue comes through service charge income and public donations. MO’s experience of working with youth, its highly trained staff, stable operational framework and financial base ensures the sustainability and scalability of the program.
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