Regulatory Alerts2025-09-30
Added · Updated
PACRA Social Impact & Performance Rating Assessment Framework
The Pakistan Credit Rating Agency (PACRA) has introduced a Social Impact and Performance (SIP) Assessment Framework to evaluate the dual social and financial objectives of Microfinance Providers, including Non-Bank MFCs, NGOs, MFBs, and NBFCs. The framework assigns ratings from SIP1 to SIP5 by systematically analyzing seven core factors: Profile, Ownership/Members, Governance, Management, Social Impact, Business Sustainability, and Financial Sustainability. This standardized rating enhances transparency and capital market access by aligning MFP operations with international social performance standards and providing investors with a clear, forward-looking measure of an entity's ability to deliver intended social outcomes while maintaining financial viability.