Developing best practices for microcredit management and operations of MFIs:

 Developing best practices for microcredit management and operations of MFIs:

PKSF has developed performance indicators and standards for its POs in different areas with a view to assessing their overall institutional strength. Moreover, PKSF has prepared a number of guidelines and policies to improve its own credit operations and that of its POs. Some of these policies, guidelines, and standards can in fact improve the performance of microcredit industry as a whole and become basis for a legal framework for microcredit industry. These guidelines/ policies/ standards have been prepared based on the field experiences and in consultation with PKSF POs and other stakeholders of the sectors.

Moreover, PKSF reviews its policies and programs continuously and adjusts them to meet the changing requirements. PKSF in the last decade has prepared a number of policy guidelines and standards for the microcredit sector based on the felt needs involving the practitioners - PKSF staff members and POs representatives and officials. PKSF has a program to develop standards in further areas and review and revise ones already prepared. Major policy guidelines and standards prepared by PKSF are:

• Accounts manual for POs.
• TORs for POs audit by PKSF internal audit team.
• TORs for external audit of POs and PKSF.
• Accounts manual for PKSF (With the International Standard).
• Loan classification and provisioning policy of PKSF and POs.
• Procurement policy.
• Guidelines for selection of POs and borrowers for Rural, Urban Ultra poor, Microenterprise and seasonal loan.
• Policy for Loan Classification and Debt Management Reserve;
• Guideline for Designing Internal Control System for POs of PKSF;
• Guidelines for Management of Savings;
• Guidelines for Management of Service Charge Earnings;
• Guidelines for Avoiding Overlapping;
• Management Information System (MIS);
• Guidelines for Performance Standards and Categorization of POs;
• Operational and Financial Ratio Analysis;
• Policy for the Utilization of Disaster Management Fund;
• Guidelines for Indicators for Early Warning System;
• Business Plan preparation for POs;
• Guideline for Management Audit of POs by PKSF;
• Guideline for Internal Audit of POs by PKSF;
• Audit TOR for External Auditor of PKSF for Auditing PKSF;
• Audit TOR for External Auditor of PKSF for Auditing its POs;
• Audit TOR for Auditors appointed by POs;
• Policy for Loans for Institutional Development.

PKSF Microcredit Programme Funding Policy for Indigenous Ethnic Minorities.