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5 All rights reserved. The data in this report has been carefully compiled and is believed to be accurate. Such accuracy is not however guaranteed. No portion of this publication may be reproduced in any format or by any means including electronically or mechanically, by photocopying, recording or by any information storage or retrieval system, or by any form or manner whatsoever, without prior written consent of the author and publisher of the publication. Disclaimer: Neither JWS Pakistan nor JWS Pakistan's investors accept responsibility for the validity of the information presented or consequences resulting from its use by third parties.

6 TABLE OF CONTENTS I II III ACRONYMS VISION & MISSION OUR VALUES VII IX XI MESSAGE FROM THE CHAIRPERSON MESSAGE FROM THE CEO OUR BOARD OF DIRECTORS ABOUT JWS PAKISTAN OPERATIONAL HIGHLIGHTS OUR PRODUCTS OUR DEPARTMENTS 16 IMPACT OF OUR WORK ORGANIZATIONAL EVENTS OUR INVESTORS FUTURE ORIENTATION 39 FINANCIAL STATEMENTS FOR THE YEAR ENDED JUNE 30, BALANCE SHEET INCOME & EXPENDITURE STATEMENT STATEMENT OF CHANGES IN FUND NOTES TO THE FINANCIAL STATEMENTS

7 Acronyms ABL AL AM AO ASR BOD CG CB GNF HBL HO HR JWS MC MF MFI MIS NBFC OLP OTW PCP PMER PMFN PMIC PMN PNCC PPAF SBI SECP SME Allied Bank Limited Agriculture Loan Area Manager Area Office Annual Staff Retreat Board of Directors Credit Group Capacity Building Gujranwala NGO Forum Habib Bank Limited Head Office Human Resource Jinnah Welfare Society Micro Credit Micro Finance Micro Finance Institution Management Information System Non banking finance company Outstanding Loan Portfolio Orientation Training Workshop Pakistan Centre for Philanthropy Planning, monitoring, evaluation and research Punjab Microfinance Network Pakistan Microfinance investment company Pakistan Microfinance Network Punjab NGO Coordination Council Pakistan Poverty Alleviation Fund Shore Bank International Securities and exchange commission of Pakistan Small and Medium Enterprises I

8 Vision & Mission Vision Sustainable economic development and social empowerment for all Mission Financial strengthening and social uplift of marginalized segments of society, through an integrated approach thereby providing financial services, capacity building and developing market linkages for them to sustain their businesses and to improve their living standards. II

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12 Client Focused All of our services & polices are client focused. Balance Taking a proactive stand to create and maintain a healthy work-life balance for workers. Innovation Pursuing creative ideas that have the potential to change the world. Integrity Acting with honesty and honor without compromising the truth. Ownership Taking care of the organization and clients as they were one s own. Empowerment Encouraging employees to take initiative and give the best. IV

13 Message from the CHAIRPERSON VI

14 Dear Friends, As Pakistan's economy gears up to gain momentum and deliver sustainable livelihood and self-employment opportunities for the common man, the diligent Microfinance sector remains at the forefront of every effort to empower and equip our citizens. This has further been augmented by the recent developments rather restructuring of the overall microfinance sector. Pakistan Poverty Alleviation Fund (PPAF) has been transformed into Pakistan Microfinance Investment Company (PMIC) and it has been made mandatory for the partner organizations to get registered under section 42 of companies' ordinance as well as to obtain license of non banking finance company (NBFC). With the grace of Almighty, JWS Pakistan has achieved both the status of section 42 company as well as license of non banking finance company. This has opened new avenues of securing investment from the commercial sources and hence putting an end to the funding crunches faced in the past. Keeping these transformations in mind, management of JWS Pakistan took a principal decision at the start of the year to celebrate this year as a year of growth consolidation and process refinement. I am glad to state that JWS Pakistan has also succeeded on this front too. Several processes were identified to be redundant and were dually replaced with more efficient and client oriented processes during the year. This helped us in consolidating our market position and access new avenues of investment for expansion in the next financial year. I would like to thank all of our well-wishers for their continuous support and congratulate all of the JWS Pakistan team for their continuous efforts. I wish JWS Pakistan a very successful year ahead. Kind Regards, Sabiha Shaheen Chairperson VII

15 Message from the CHIEF EXECUTIVE OFFICER Dear Friends, On behalf of the Board, I take pleasure in presenting you the annual report of JWS Pakistan. Change in name indicates an evolutionary process the institution has been going through right from its inception in In accord to the prudent regulations of Government for the financial sector, management took a bold decision of transforming the parent NGO into a section 42 company by the name of JWS Pakistan. This indeed has opened new avenues of opportunities for the company. Envisioning the transformation and allied challenges, management decided to focus on growth consolidation and refinement of our standard operating procedures (SOPs) during the year. This was a necessary step to take a pause, think through the recent developments and concentrate on a more process driven and systematic approach to attain sustained growth in the long run. This has resulted into more refined business processes and stocked enough potential energy to go for expansion in the next business year. Company has also started diversifying its financing sources and now includes three renowned national and international investor groups while initial negotiations with few others are in process. This highlights our business performance, openness of processes and existence of robust management model to manage large scale financing and non financing operations spread over six districts in Punjab. Few performance highlights for the year under review include; OLP of 718 Million PKR Disbursement of 1.3 Billion PKR 99% beneficiaries include women Retention rate of 70% Equal number of areas covered in urban and rural locations IX

16 We are aware that we might not have touched lives of too many people in this year, but we have ensured to bring positive impact on the lives of the poor communities we work with. To systematically understand the impact of our services on the socio economic landscape of communities, JWS conducted an impact assessment study with clients who have signed up for at least three loans. Results of the survey were encouraging and provided us resolve to keep up the good work as well as improve the grey areas. All of these achievements have been made possible with the endless efforts of our dedicated and seasoned staff. JWS Pakistan values these contributions of the staff and has taken milestone steps to benefit staff members. Some of these include annual salary increments, regular promotions as well as staff health insurance. Last but not the least, the reason of our existence, growth and outreach is attributed to our vision of Social and economic development for all. As it is said, Nobody can help everyone, but everyone can help someone. Most of us have the tendency to wait for someone to prompt us to do good things. As mother Teresa rightly said, Do not wait for leaders; do it alone, person to person ; in other words make a difference to someone's life. There is tremendous satisfaction in making others happy. Let us give the society the best. Be a candle, be a hope, be the strength, be an inspiration, be there when it calls for and make a difference in others life. With this foresight, we started Jinnah Welfare Society (JWS) which has now transformed into JWS Pakistan. I conclude with acknowledgment of remarkable efforts of staff, management and board of directors to help in steering JWS Pakistan forward. Kind Regards, Qazi Shoaib Alam Chief Executive Officer X

17 ANNUAL JWS Pakistan BOARD OF DIRECTORS Chairperson: Ms. Sabiha Shaheen has been working as chairperson of JWS Pakistan since Under her visionary leadership, JWS Pakistan has scored milestone achievements. Within the institution, she is known as a s t r o n g a d v o c a t e o f i n n o v a t i o n a n d continuous development. She also heads and is one of the founding members of BARGAD, a youth-development organization based in Gujranwala to p r o m o t e P e a c e, J u s t i c e a n d Yo u t h Cooperation in Pakistan. She specializes in youth development and gender and is a key civil society practitioner since 1997 to put youth issues on priority agenda in Pakistan and has helped advocacy campaigns to design and implement national youth policy in the country. Chief Executive Officer: Qazi Shoaib Alam is a seasoned professional with over 25 years of experience in the domains of micro finance, enterprise development, organizational leadership and social sector development. He is an active member and contributor of several development networks at regional and international level. As CEO of JWS Pakistan, he is credited with successfully launching and operating a non banking finance company (JWS Pakistan) for the last 25 years. XI

18 JWS Pakistan ANNUAL Director BOD: Mr. Farrukh Iqbal has more than 37 years of experience in banking sector. He has worked on managerial positions with several financial institutions. His areas of expertise include financial operations, internal controls and strategic plans development. He is now working as an active member of JWS Pakistan and playing impor tant role in providing strategic guidelines to the institution. Director BOD: Mr. Muhammad Shahid is an educationist by profession and has been running private institutions successfully. As member board of JWS Pakistan, he has i n t r o d u c e d n e w a s p e c t s o f s o c i a l development in the financial services. He is also credited with developing outlines of training and other staff development initiatives. XII

19 Annual Report This report offers a window of information into JWS Pakistan's guiding philosophy, Vision, Mission and achievements during the year. JWS Pakistan remains committed to establish sound business standards and in offering innovative pro poor economic development services which enhance dignity and self-respect amongst marginalized communities of Pakistan.

20 JWS Pakistan ANNUAL 1. About JWS Pakistan Established in 1992, JWS Pakistan is a specialized Non Banking Finance Company (NBFC), licensed from Securities & Exchange Commission of Pakistan (SECP). Company has its head office in Gujranwala with branch offices in upper and central Punjab region. Over the period of time, company has created a memoir of transforming informal economic activities at the grassroots level into small yet vibrant and viable enterprises. This has been made possible with our tailor made financial services to meet their capital needs and non financial services to help them steer their businesses with technical skills. Company has well established standard operating procedures and multiple layers of check and balance to ensure smooth and seamless business operations at all levels. This standardization of operations and our increased transparency has attracted international investors and playing an imperative role in company's success and development. Board of directors and management of the company are committed to continue these efforts that give hope and bring prosperity in the lives of marginalized segment of our society. 01

21 ANNUAL JWS Pakistan 2. Operational Highlights The Financial Year has been a good year for the Company on most parameters. As stated earlier, the year was planned around growth consolidation and refinement of business processes to make ourselves prepared for the expansion in the coming years. All of these parameters were successfully met and brought refinement and transparency in operations Operational Footprints Map highlighting currently served and future expansion areas. ATTOCK RAWALPINDI BHAKKAR MIANWALI KHUSHAB CHAKWAL JHANG SARGODHA JEHLUM FAISLABAD MANDI BHAUDDIN HAFIZABAD NANKAN SAHIB GUJRAT GUJRANWAL SHEIKHUPURA SIALKOT NAROWAL DERA GHAZI KHAN MUZAFFARGARH LAYYAH MULTAN KHANEWAL LODHRAN TOBA TEK SINGH VIHARI SAHIWAL BAHAWAL NAGAR OKARA KASUR LAHORE RAJANPUR RAHIM YAR KHAN BAHAWALPUR Currently served Potential areas for expansion 02

22 JWS Pakistan ANNUAL 2.2. Portfolio and Disbursement Growth The Company has expanded its outreach by increasing the penetration in the existing districts as well as by adding additional staff. This helped in growth consolidation, staff development as well as in refinement of business processes. D u r i n g t h e y e a r u n d e r r e v i e w, outstanding loan portfolio of JWS Pakistan stood at PKR Million. This portfolio has been maintained cleanly with portfolio at risk ration of below 1%. This clearly highlights commitment of our team as well as strong and productive client relationships. Similarly, a healthy disbursement of PKR 1.3 billion (fig. 2) was achieved by the team through the network of 24 operational branches spread across six districts. Both the OLP & disbursement levels were 100% achieved in light of the growth consolidation and refinement plan approved during the annual strategic planning meeting of the core management. Similarly, JWS Pakistan has gradually increased average loan sizes up to PKR 35,604 (fig. 3) keeping in view the business needs of clients and their regular requests. Increased loan sizes also increased OLP Growth (Fig-1) OLP ,862, ,859, ,993, ,168, Disbursement Growth (Fig-2) 1,400,000,000 1,200,000,000 1,000,000, ,550, ,000, ,000, ,860, ,000, ,000,000 0 Disbursement 1,307,475,000 1,292,890, Average Loan Size (Fig-3) Average Loan Size 40,000 35,000 33,735 35,604 30,000 29,316 25,000 24,604 20,000 15,000 10,000 5,

23 ANNUAL JWS Pakistan stakes which were dually managed by our committed and seasoned workforce. These growth indicators show company's enhanced maturity in handling the operations and correspond to deeper market penetration in given areas of operations. Team is hopeful of achieving even better results in the coming financial year Portfolio & Delinquency Management Outstanding loan portfolio contributes more than 90% of the asset base of non banking finance companies like JWS Pakistan. This high concentration of assets places equally great responsibility in managing this asset base with utmost care and professionalism. Fortunately, JWS Pakistan has several layers to ensure compliance of standard operating procedures for lending. These layers include the operations department itself, monitoring department as well as internal audit departments. Professional client need assessment, dedicated monitoring and compliance checks have helped in keeping portfolio at risk (PAR) of the company below 1% historically. Behind this excellent portfolio performance, not only rest our business processes, but credit also goes to the spread of the portfolio across economic sectors as well as districts. Fig-4 highlights the spread of the portfolio across five key sectors of handicraft, commerce/trading, services, agriculture and livestock in descending order of their ranking. These sectors further have stronger local roots as well as wide economic moat making them excellent choice for lending. OLP Spread Across Sector (Fig-4) 04

24 JWS Pakistan ANNUAL 2.4. Exposure Details Similarly, JWS Pakistan has systematically spread the portfolio among 24 branches across six districts of operations. This spread helps in diversifying portfolio risk across a wider landscape and is another strategy of portfolio management at JWS Pakistan. F i g - 5 m i g h t h i g h l i g h t g r e a t e r concentration of funds in Gujranwala district but they are evenly spread out in District Wise OLD Spread (Fig-5) Gujranwala 11 branches operating in the area. Furthermore, Fig-6, presents an outlook of the OLP of the branches providing greater detail about the investment exposures. None of the branches has 3% 0.01% 5% 24% 53% Gujrat Hafizabad Jehlum Mandi Bahauddin over 7% exposure of the total OLP, making the spread an ideal one. 15% Sialkot Branch Wise OLP Million PKR (Fig-6) GKR JT KMK QMA SAB WZR DCK JPJ JHU LMA MBD SGR DSK FTG FDT GDP PSR SMB APC HZD HZR JPB NVK QDS Company plans to expand its operations in two additional districts in the next fiscal year with 7-10 new branches. This will further lower down the risk of geographical concentration in the long run. 05

25 ANNUAL JWS Pakistan 2.5. Business Sustainability Business sustainability comes as a top agenda on the priority list of management team at JWS Pakistan. This is usually measured in terms of operational self sufficiency (OSS) as well as financial self sufficiency (FSS). Operational self sufficiency (OSS) measures the degree to which the organization's expenses are covered by its core business and is able to function independent of grant support. OSS (Fig-7) of the JWS Pakistan is positive as well as trending towards further improvement every year. This highlights enhanced and growing ability of the company to meet all its operating expenses with operational income alone. Similarly JWS Pakistan has achieved and augmented its financial self sufficiency as well over Operational Self Sufficiency (Fig-7) the period of time. For the year, FSS stood at 126%. This further highlights the sustainability of lending operations of JWS Pakistan. OSS 2.6. Net worth Net worth is the amount by which assets exceed liabilities. Net worth is an important metric in understanding the health and worth of any business. A consistent increase in net worth indicates good financial health; conversely, net worth may be depleted by annual operating losses or a substantial decrease in asset values relative to liabilities. JWS Pakistan has a very healthy net worth owing to the size of the business as well as recent expansions carried out. Net Worth (Fig-8) Net Worth 300,000, ,000, ,000, ,000, ,000,000 50,000,

26 JWS Pakistan ANNUAL 3. Our Products & Services JWS Pakistan has always strived to develop client oriented and demand driven solutions for financial needs of marginalized segment of our society. This however, goes through imperative steps of conceiving, designing, piloting and then scaling any product. This process helps us in identifying potential products out of many emerging trends. JWS has articulated following demand driven products using this robust model of product development; Enterprise Loan These loans are specifically designed for poor and disadvantages groups as a mean to encourage and assist them in undertaking income generating activities. Borrowers are encouraged to form a group consisting of 5-15 members who are not being served by other microfinance institutions or do not have outstanding amount more than PKR 70,000. Beneficiaries of micro credit loan typically include small businesses operators providing products or services to their local communities. Loan range is 20,000 to 50,000 and duration of this loan is one year. All repayments are collected through bank deposits. Operations team regularly conducts monthly group meetings to ensure productive use of loan and guide the borrowers about their respective businesses. 07

27 ANNUAL JWS Pakistan Agriculture Loan Keeping in view the importance of agriculture, its role in the local economy and issues being faced, JWS Pakistan introduced agricultural loan product in January This product was developed to solve problems of low per acre yield being reported in the region mainly due to non-adequate usage of fertilizers, pesticides, lack of knowledge about modern cultivation techniques & access to finance problem. This product received very positive response from the farming communities and has actively been able to resolve their issues since its launch in Agricultural loans are disbursed through Farmers Development Groups (FDGs), consisting of 5-15 members having land holding of 5-10 acres. Loan amount ranges from PKR 50, ,000. Asset Backed Lending Asset Backed Lending Considering the nature of the micro businesses in Gujranwala division, JWS Pakistan opted to pilot run Asset backed lending program of PPAF. This product was designed to provide necessary support for purchase of capital assets by the micro businesses. Product provides financing for purchase of asset upto PKR 150,000 in easy to pay 18 monthly installments. Financing is available in individual capacity for the small entrepreneurs having their own small businesses. 08

28 JWS Pakistan ANNUAL Apart from the financial services, JWS Pakistan also provides non financial services to its valuable clients to further improve their businesses. Under the non financial services component, JWS Pakistan provides following services; Business Trainings: Trainings and orientation related to the respective businesses are common part of our non financial services. These trainings and orientation sessions are conducted at the start of the lending cycle in a group form. These trainings provide basic knowledge related to the specific business domain, productive use of loan money and ways to enhance productivity and efficiency. Market Linkages Development: JWS Pakistan has extensive footprints in the six districts of its operations that help us integrate and promote market linkages. To systematically implement the linkages and marketing development programs, our team follows value chain development approach. Under this value chain model, JWS recently organized a mega Kissan Conference this year to promote linkages of over 500 farmers with the representatives of around 20 input suppliers and extension services providers. Client Life & Health Insurance: JWS loan insurance ensures that a member's loan does not become a burden to his/her family in the case of his/her death. If a member dies, then the outstanding amount is written off as the insurance benefit. Nominee/Guardian is also given PKR.7, 000 for funeral purpose. All clients of JWS are insured under this scheme with SPI & Adamjee insurance companies. JWS Pakistan has also ensured all of its clients for the health coverage as well. 09

29 ANNUAL JWS Pakistan 4. Our Departments Finance & Accounts Department Human Resource Management Operations Department Information Technology Internal Audit PMER Department 4.1. Finance & Accounts Department Mr. Jamil Anjum is the driving force behind the finance & Accounts department of JWS Pakistan. Under his leadership, company has established sound SOPs for financial transactions at all levels. He has helped company in adapting to the new regulatory environment under Securities and Exchange Commission of Pakistan (SECP). Finance department has also efficiently managed the funds flow in the company. Being a microfinance company, JWS Pakistan requires health inflow of funds to meet the lending requirements. Meeting this challenge, finance department in collaboration with other departments has successfully signed funding agreements with number of national and international investor groups Human Resource Management Department Ms. Warda Iqbal, General Manager, heads the human resource department at JWS Pakistan. She has introduced new concepts of human resource management within the company that have proven to be successful. Under her leadership, department has transformed more into a center of excellence providing energy, vitality and skills for the workforce. Department is tasked to manage the entire staff of the company that involves decisions like need identification, placing job advertisements, recruitment, selection, training, mentoring, succession planning and promotions. To meet the changing circumstances, HR department regularly conducts orientation and training sessions for the staff. During 10

30 JWS Pakistan ANNUAL the reporting year too, number of such sessions were arranged in addition to sending senior staff members at training events. Few of the performance indicators highlight the excellent work the department is doing for the company. Indicator Succession Planning Average Employee Reten on Rate Average Employee Turnover Rate Average Employee Age Employee Training Rate JWS Pakistan 100% for managerial posts 94% 6% 27.5 Years 66% Furthermore, average employee age highlights the young workforce driving the organization Operations Department Operations department is headed by Mr. Imran Dhillon, an experienced micro finance practitioner since He has helped in refining business processes over the time and his contributions for the staff capacity development are highly acknowledged. Operations wing is also responsible for product development, disbursement and collection of loans as well as keeping a regular check on the staff for compliance and quality control. Keeping in view the growth consolidation strategy of the organization in mind, operations team successfully maintained the portfolio of clients and at the same time brought about several refinements and make over's in the business processes to make them more efficient and client oriented Information Technology Department Information technology is another backbone service provider department of the company. IT department is supervised by an energetic professional Mr. Islam Gull. His years of experience in the IT domain helped company in evolving the MIS system over the period of time. 11

31 ANNUAL JWS Pakistan IT department is actively supporting the virtual network of the company and continuously working to provide all the functional support and enhancement of the management information system. In addition to this, department also holds frequent training and orientation programs for the field staff. These trainings prove handy in ensuring standardization as well as in improving compliance of the SOPs in lending operations Internal Audit Department Internal audit department is the second line of defense against any possible theft, fraud and misrepresentation of information at JWS Pakistan. Mr. Nazir Khan heads the wing. Audit department regularly conducts field visits both planned as well as surprise to enhance its effectiveness and deterrence against any planned and unplanned frauds and misrepresentations. Furthermore, to ensure transparency and independence in its operations, internal audit department directly reports to the head of the organization. Overall the department ensures following tasks on regular basis; Assessment of adequacy and efficiency of the internal controls and risk management system. Assessment of adequacy and efficiency of the internal controls and risk management system. Providing consultations to the executive body of the JWS on the issues related to the risk management, internal control and corporate governance. Assisting executive body of JWS in investigation of wrongful acts of employees and third parties, including negligence, corporate fraud, corrupt practices, abusive acts and various wrongful acts causing damage to the organization. Assisting in system improvement through advisory reviews. Ensuring operational compliance with SOPs and organizational policies Ensuring financial transparency in the organization. 12

32 JWS Pakistan ANNUAL 4.6. PMER Department Planning, Monitoring, Evaluation and Research (PMER) is a newly established department at JWS Pakistan to complete the triage of check and balance. Department is headed by Mr. Khurram Hussain having over eight years of experience in program design, management and evaluation. Department is responsible for carrying out regular monitoring visits of branch offices as well as operations. This has helped company in further improving business operations by frequent insights into the grey areas provided by the PMER department. Apart from the regular monitoring of the business operations of the company, department also conducts area profiling, product development studies, impact assessment and other technical feasibilities for the company. 13

33 IMPACT OF OUR WORK

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35 ANNUAL JWS Pakistan 5. Impact of Our Work During the year, JWS Pakistan carried out an impact assessment study to highlight the grey and good areas of our program. Assessment was carried out using pre and post assessment model with women clients who have utilized at least three loan cycles (3 years). Glimpses of impact on life of women entrepreneurs & their businesses are presented below; 50% 45% 40% 35% 30% 44% 29% fig. 9 fig % 100% 98% 25% 20% 15% 10% 5% 0% 14% Management Quality of Product Production 12% No Change 80% 60% 40% 20% 0% 17% 24% Bank Account 77% Productive use of loan 2% 20% Bank Deposit Slip Pre Post (fig 9-10) Impact of Training on Financial Literacy & Business Performance fig % % 51 % 41 % Pre Loan Post Loan 0 Health Education Food Seasonal Fruits (fig 11) Impact on family budget 16

36 JWS Pakistan ANNUAL Furthermore, specific questions were asked to gauge impact towards improvements in health, education, food and living standard of the houses. Pre and post scenarios highlighting customer satisfaction are summarized below in Fig Pre Post Health (Fig-12) Pre Post Education (Fig-13) Best 27% Best 23% Post Loan Health Falsities Better Fine Bad 3% 17% 53% Post Loan Education Falsities Better Fine Bad 4% 19% 44% Worst 0% Worst 1% Best 0% Best 0% Pre Loan Health Falsities Better Fine Bad 16% 13% 69% Pre Loan Education Falsities Better Fine Bad 10% 25% 56% Worst 2% Worst 2% 0% 50% 100% 0% 20% 40% 60% Pre Post Food Quality (Fig-14) Pre Post Living Standard (Fig-15) Best 36% Best 37% Post Loan Food Quality Better Fine Bad 1% 16% 48% Post Loan Living Standard Better Fine Bad 1% 16% 46% Worst 0% Worst 0% Best 2% Best 1% Pre Loan Food Quality Better Fine Bad 7% 25% 67% Pre Loan Living Standard Better Fine Bad 5% 28% 65% Worst 0% Worst 1% 0% 50% 100% 0% 50% 100% It is evident from the quantitative responses that considerable improvement has been witnessed by respondents. In all the four cases, pre scenarios are dominated by the response as fine which has been dropped to almost 1/3rd and the remaining responses have recorded against improved situations like better and best. 17

37 ANNUAL JWS Pakistan 5.1. From Desperation to Employer of 11 Workers Jan bibi is a widow of age 57 and responsible for earning bread and butter for ten (10) dependents. Her husband used to prepare decorative belts used by police and armed forced on daily wages, however, after his sudden demise; she borrowed money from JWS Pakistan and started her own small business back in She started her business with one small belting machine, kept on borrowing money from JWS to put in productive use every time and gradually she has been able to install 9 automatic belting machines. Initially she used to prepare belts as per demand specifications and sell back to the middlemen in Gujranwala district. Over the period of time she started to develop her market linkages with the help of her growing sons in the markets of Sialkot, Lahore, Faisalabad and Quetta. This really helped her in expanding the market for her products as well as improved her profit margins. She highlighted number of challenges in her way forward including; Untrained Staff: In the starting phase of the business, Jan experienced lack of trained staff and had to work extra hours to meet demand orders. Later on she engaged and trained women of her community with her. This helped her in overcoming shortage of trained manpower in an economical way. Meeting specifications of Sample: Jan stated that her orders are mostly based on the samples selected by the customers, she therefore has to prepare product as per the customer demand. This however, reduces the pace of production as most of the time product is new and workers are required to be careful. However, years and years of experience has helped her workers in quickly adopting to new demands. Getting rid of middle men: In the start of the business, she relied heavily on middleman to get sale orders and quickly realized that bulk of the margin is retained by them. She therefore started establishing contacts with retailers and bypassed the middleman to earn her due reward over the period of time. Gaining financial leverage: During the troubling times instead of sitting idle and doing nothing, she regularly availed loans from JWS Pakistan and kept on putting equity injections into her business. This resulted in increased working capital, raw material inventory as well as spread of her business over the period of time. Her hard efforts, commitment and struggle in the right direction gradually helped her overcome all of the challenges in her way one by one. She proudly claims that her business helped her in constructing her own home, buy a motorbike for son, and arrange marriage of two daughters as well as in purchasing a small plot of 2.5 marls out of the profits. 18

38 JWS Pakistan ANNUAL Impact of the 7 years of JWS's loan program on her household economy is evident from the graph below; fig

39 ANNUAL JWS Pakistan 5.2. Cricket Balls for Life The story of Cathreen, is another glimpse of success achieved by a helpless woman. She is 45 years of age and manages a small business of handmade cricket balls at her home. Gradually she has been able to employ around ten (10) women of her community in business. The business of cricket ball making is all about taking orders from the factory in Sialkot and then stitching the leather pieces around the rubber ball to shape them as the final product. She explained the problems of lack of material and finances to start this business at home in the start, however, with the gradual funding from JWS Pakistan, she slowly got hold of the situation. At present she has around 7 stitching platforms and plans to purchase more for the women who come at her home to earn livelihood. With gradual improvement in her business, she has been able to bring considerable improvements to her life; Speaking about future intentions, she stated that she wants to purchase her own material, make a complete piece of ball and sell it in the market with her own name. She is confident that this initiative shall help her in availing higher profit margins by bypassing the middleman. Meanwhile, she will continue to work with the factory to offset the risks or setbacks during the initial period during which she introduces her own brand of product. Impact of Loan Revenue Income Saving Food Education Health Clothing fig. 17 Pre Loan Post Loan 20

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41 ANNUAL JWS Pakistan 6. Organizational Events 6.1. CITI-PPFA Award for Most Successful & Innovative Entrepreneurs Every year, Citi foundation UK announces awards for the best microfinance entrepreneurs all over the world. Awards program of this year highlighted the achievements of some of the most innovative microfinance institutions and micro entrepreneurs in Pakistan. JWS Pakistan also participated in this highly competitive program for the nomination of its clients. Credit to the JWS team, out of fifteen (15) best entrepreneurs from all over Pakistan, three (3) were from JWS Pakistan. Selection of three micro entrepreneurs of JWS Pakistan highlighted effective financial and non financial services for the clients. Speaking on the occasion, selected entrepreneurs of JWS Pakistan expressed their views about the JWS program and how it helped them in transforming their typical activities into more structured enterprise processes. They also highlighted that the linkages and market orientation trainings of the company also helped in better understanding and strategizing the forward and backward market linkages. 22

42 JWS Pakistan ANNUAL Selected entrepreneurs were operating model businesses in the domain of football stitching, woolen thread making and preparation of ready made masonry material. Selected enterpenure and credit officers with CEO & GM Finance, JWS Pakistan 23

43 ANNUAL JWS Pakistan 6.2. Annual Staff Retreat Celebrating Success Together was the theme for the 9th Annual Staff Retreat at JWS Pakistan. The colorful and well planned event was organized on April 30, 2016 at Rachna Pearl Hotel. Event was participated by 300 employees and honorable guests from civil society as well as members of board of directors. Colorful event was organized by the company to; Recognize efforts of the team Provide an event of rejoice and refreshment away from busy professional life Promoting family culture and values & Celebration of a successful year Speaking at the occasion, Chief Executive Officer JWS Pakistan Mr. Shoaib Babar welcomed all the distinguished guests in the colorful event. He highlighted the year around hard work of the entire JWS Pakistan team and congratulated them on achieving all of their goals. Highlighting the transformations taking place in the financial sector, he cautioned entire team of JWS Pakistan to knot their belts and be ready for accelerated expansion in the year to follow. He also announced several staff benefits packages including salary increments, staff health insurance and other benefits. All of the staff members a p p re c i ated t h e commitment o f t h e s e n i o r management to facilitate them in every possible manner. Event was solely planned by the staff members and had following key themes; 24

44 JWS Pakistan ANNUAL Musical Concert: Professional DJs were hired by the company for the entertainment and enjoyment of the staff and guests. Musical group performed really well and played variety of songs as per their plan as well as on the demand of the audience. Bumper Draw, Umrah Ticket: JWS Pakistan announced a bumper prize of Umrah Ticket through the lucky draw. Later towards the end of the event, a draw was made and a young credit officer won the prize. He thanked the management for the gift and paid good regards to the organization. Eating Competitions: To promote staff participation and create an enjoying event, an eating competition was organized by the event managers involving area managers from the field staff. This time the winner was the area manager Mr. Abid Tufail. Winners were presented beautiful gift hampers. Fun Games: Participation of the staff members was further enhanced with thrilling and fun games that not only created an environment of fun but also promoted employee's resolve for winning. Staff Benefits and Bonuses: CEO of the organization announced staff benefits for the organization. A salary increment of 10-25% was declared for all the staff members along with other benefits. Lunch: Towards the end of the event, delicious lunch was served that provided an excellent environment for the staff and guest members to network and enjoy food. 25

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47 ANNUAL JWS Pakistan 6.3. Kissan Conference A mega Agriculture conference was organized on April 14, 2016 on the very day of BESAKHI, a traditional day celebrated by the farmers before starting crop harvesting. The venue was deliberately selected at the heart of the farming lands to ensure maximum participation of farmers in the event. Conference started with the recitation of Holy Quran and the speaker Mr. Imran welcomed the participants and highlighted the agenda of the conference. He later on invited the head of the organization, Qazi Shoaib to welcome the distinguished guests and say few words about the event and highlight its underlying objectives. Qazi Shoaib Alam (Chief Execu ve JWS Pakistan) Qazi Shoaib Alam greeted the dis nguished chief guest, member board of directors, representa ves of line departments, fer lizer and pes cide companies, poli cal and administra ve ers, research ins tu ons and farmers. Highligh ng the importance of the agriculture sector he stated that Pakistan is one of the few countries globally who have been declared the food basket of the world. This puts greater burden on our shoulders to come up with the expecta ons, however, this shall not be possible with the tradi onal ways and we must adopt modern farming technologies, inputs and methods to increase yields and quality of produces. 28

48 JWS Pakistan ANNUAL He urged farmers to get benefit from the program and the facilities that JWS Pakistan has been providing to them at their door step. He further stated that JWS is working on several initiatives to provide maximum relief to farmers and improve their socio economic conditions including but not limited to the following; Milk Collection centers: Qazi Shoaib Alam further highlighted that JWS is planning to establish milk collection centers at various places to help farmers sell milk on better prices. These milk collection centers shall be equipped with chillers and shall be a revolutionary step in the local dairy industry. This intervention he explained shall not only improve the milk production but shall also create employment opportunities for the local people. Weather Alert Forecasts: Highlighting another ongoing initiative of JWS, he stated that farmers are being provided free weather alert forecasts by the organization. Farmers get a weekly forecast on their mobiles. This is helping farmers to plan their farming activities keeping in view the weather conditions. He then urged farmers to benefit from the program, visit stalls of companies, make linkages with the extension departments and other stakeholders to understand about the latest technology as well as the best practices. Later on number of participants from the participating extension departments, input suppliers and research organizations expressed their views and shared very practical tips. 29

49 ANNUAL JWS Pakistan Institutional Participants of Agriculture Conference Jaffar Brothers Chaudhary Khair Din & Sons Fauji Fertilizer Company Pak Arab Fertilizer Input Suppliers Engor Fertilizer Company Arysta Life Siences Punjab Seeds Corporation Buyers Fatime Fertilizer Rice Partners Ltd. Farm Dynamics Adaptive Research Farms Livestock Department Agriculture Department Line Department Water & Irrigation Department Fishers Department 30

50 JWS Pakistan ANNUAL 6.4. Agriculture Resource Center Taking practical steps for the development and modernization of agriculture in the region, JWS Pakistan took an innovative step by establishing an Agriculture resource center (ARC). Center is located in the hub of the agricultural lands and far away from the main cities to ensure that it benefits to the small and helpless farmer. The center shall be a source of information and inspiration for the farmers who may visit the center to get information about crops, inputs, extension departments, access to finance, training events as well as signup for free weather alert services. JWS Pakistan has productively used technology by providing free weather alerts as well as forecasts for the farmers to plan their agricultural activities. The center is also equipped with a training hall where regular capacity building programs shall be conducted for the farmers. Center was formally opened on April 14, 2016 by the CEO JWS Pakistan, Qazi Shoaib Babar along with his team members. 31

51 ANNUAL JWS Pakistan 6.5. Trainings & Capacity Buildings Trainings and capacity building initiatives were the year around events at JWS Pakistan. Human resource department has been central to these activities with active support of allied departments in making the training and capacity building events productive and impact oriented. 32

52 JWS Pakistan ANNUAL 6.6. Free Health Camps & Health Insurance for Clients JWS has a history of conducting free medical relief camps in not only time of calamities but also during normal days for the betterment of communities where we feel that health care is not being provided adequately. These medical and relief camps provide basic medical checkup, medication as well as guidance to the patients in case of serious illness. Another important aspect of these health camps is creating awareness among masses about health, hygiene, child care and other seasonal outbreaks. During this year as well, JWS arranged number of free medical camps of two days each in far furlong villages of our operational areas. Clients appreciated the efforts of the company in facilitating them in every possible manner. In addition to this, JWS Pakistan has also provided health insurance to all of her women clients. This facility is greatly valued by the clients. 33

53 ANNUAL JWS Pakistan 7. Our Investors Donor organizations have special role in development sector of Pakistan. Without donor support it is next to impossible for any development organization to establish and sustain its operations for a longer period of time. Development organizations can at best craft a mission, identify issues and challenges and develop a strategy for delivering results but cannot raise required funds to ensure implementation of the programs. Therefore all organizations need ample resources and financial support to ensure implementation of their development programs at grass root level. On this front, JWS proved to be fortunate as soon after its incorporation, it started receiving financial support from the donors. During the course of its history, following donor organizations have supported JWS in delivering poverty alleviation programs; Pakistan Poverty Alleviation Fund (PPAF) KIVA South Asia Partnership (SAP-PK) The Asia Foundation (TAF) Aurat Foundation (AF) Catholic Relief Services (CRS) Financial Sector Strengthening Program (FSSP) European Commission (EC) Agri Support Fund (ASF) Trust for Voluntary Organization (TVO) International Fund for Agricultural Development (IFAD) 34

54 JWS Pakistan ANNUAL After few years in 2001 JWS signed a partnership agreement with Pakistan Poverty Alleviation Fund (PPAF). It proved to be a turning point for the organization. Since then PPAF has been supporting the organization not only financially but technically and morally as well. Pakistan Poverty Alleviation Fund (PPAF) The Pakistan Poverty Alleviation Fund (PPAF) represents an innovative model of public private partnership. Incorporated under section 42 of the companies' act 1984 it follows the regulatory requirements of the Securities and Exchange Commission of Pakistan. The fund focuses on poor rural and urban communities, with specific emphasis being placed on gender and empowerment of women. Benefits accrue directly to the vulnerable through income generation, improved physical and social infrastructure, and training and skill development support. KIVA KIVA is an international organization from USA that links micro finance borrowers and lenders globally. In order to perform such operations, it carries out extensive due diligence to identify and sign partnerships with leading micro finance institutions in developing countries. These institutions are then integrated with KIVA lenders using a state of the art web based portal. By the grace of God, during the year , JWS was one of the pioneer organizations from Pakistan to sign partnership agreement with KIVA. The agreement has pledged provision of credit line for the clients of JWS. The partnership further highlights trust extended by international organizations in the policies and procedures of Jinnah Welfare Society. 35

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56 JWS Pakistan ANNUAL 8. Future Orientation An annual strategic planning meeting was organized towards the end of the financial year. All of the parameters achieved during the year were discussed and future course of action was outlined in the meeting. Salient features of the next year's plan included; Products Catalogue: JWS Pakistan has been operating three products over the period of last few years. Keeping in view the social developments and boom in the economic activities at grass root level, management decided to enrich the products catalogue in the next financial year. New products were conceived to be introduced in education, livestock, health and business sectors. Geographical Expansion: Keeping in view the successful achievements during the year aimed at growth consolidation and process refinement, management planned to carry out expansion of the services into new geographical areas as well as enrichment within already served areas. Respective department heads were asked to carryout basic feasibilities as well as area profiling of the potential sites. Funding Sources & Regulatory Compliance JWS Pakistan has solely worked with Pakistan Poverty Alleviation Fund (PPAF) during the course of her operations in the microfinance domain. It was strategically decided to broaden the scope of funding sources for enhanced stability and growth. It was also decided to chalk out the clear reporting requirements of SECP and fully comply with it. Staff Development: Rightly conceiving, management also decided to massively focus on the staff development in anticipation of expansion in the next financial year. HR department was tasked to develop the staff requirements in terms of numbers as well as requirements in terms of functional skills against each job category. 37

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