Egyptian fintech firm Halan Microfinance Bank has officially entered the Pakistani financial landscape by acquiring Advance Microfinance Bank. With a commitment to investing $10 million, Halan aims to establish a strong presence in the country, setting an ambitious goal of building a $500 million loan portfolio over the next five years. This strategic expansion marks a significant development in Pakistan’s microfinance sector, promising broader financial inclusion and greater access to credit for individuals and businesses.
As part of its expansion strategy, Halan plans to introduce a digital banking app within the year while simultaneously growing its physical footprint by opening 100 new branches across Pakistan. The fintech firm is also awaiting approval for a national banking license, which will enable it to further scale its operations and offer comprehensive financial solutions. By integrating digital banking with traditional financial services, Halan aims to make financial access more seamless and efficient for Pakistan’s underserved communities.
The bank’s financial services portfolio will encompass microfinance, SME lending, and a range of digital financial solutions designed to cater to a diverse customer base. A key priority for Halan in Pakistan is the empowerment of women entrepreneurs, support for the agricultural sector, and the facilitation of vehicle financing. These efforts align with the country’s broader financial inclusion goals, which focus on providing credit and financial resources to traditionally underserved segments.
Pakistan’s microfinance sector has witnessed substantial growth in recent years. The number of active borrowers has surged to 10.78 million, while the gross loan portfolio has more than doubled from Rs. 275 billion in 2018 to Rs. 565.8 billion in 2024. With its extensive experience in global microfinance markets, Halan is well-positioned to contribute to this expansion by providing tailored financial products that cater to the evolving needs of small businesses and low-income individuals.
Currently, Halan serves around 50,000 customers in Pakistan, and it aims to double this number in the near future. The company’s global operations have already seen the disbursement of $11 billion across Turkey, Egypt, the UAE, and now Pakistan. This track record reflects Halan’s capacity to drive financial inclusion on a large scale and support economic growth in emerging markets.
In addition to conventional microfinance offerings, Halan is developing a suite of Shariah-compliant financial products, ensuring its services align with the preferences of a significant portion of Pakistan’s population. Furthermore, the company is forging partnerships with local firms to offer embedded financing solutions, including advance salary disbursements and installment payment options. These initiatives will enhance accessibility to financial resources, enabling individuals and businesses to manage their financial needs more effectively.
By acquiring Advance Microfinance Bank, Halan has secured a fast-track entry into Pakistan’s market through an existing banking license, allowing it to bypass many regulatory hurdles. With its focus on innovation, digital banking, and financial inclusion, Halan Microfinance Bank is poised to play a transformative role in Pakistan’s evolving financial sector, driving progress toward a more inclusive and accessible banking ecosystem.
