Microfinance Inst Kashf Foundation to launch $29m Reconstruction Fund for Flood Victims

Microfinance Focus, Aug 31, 2010: For the rehabilitation and reconstruction of flood affected communities in Pakistan, Kashf Foundation which is a microfinance institution will be setting up a $ 29 million Reconstruction Fund, as told to Microfinance Focus.

The primary focus of this 2 year fund will be to rebuild the livelihoods of households along with supporting investments in education through the reconstruction and/or rehabilitation of a school in some communities, and the setting up of a clean drinking water plant in other communities.

The initial scope of the fund will be to target 10 severely affected communities (5 in Southern Punjab and 5 in Khyber Pakhtoonkhwa). The average size of the communities would be around 1,500 households or 7,500 individuals. The overall project will therefore cater to 15,000 households or 75,000 individuals.

Kashf Foundation will be the primary implementing agency for the fund. Kashf Foundation (KF) will establish a separate unit for overseeing the management and implementation of the reconstruction fund.

The fund will be capitalized by donations from the Pakistani diaspora and local Pakistani businesses, along with international government aid agencies, DFIs, charities, foundations, multinationals, high networth individuals etc. The total outlay of the fund will be around $29 million and each beneficiary family will be getting a $ 1200 loan along with $690 grant per family including school construction.

Kashf Foundation has already started a relief drive wherein relief packages will be distributed 10,000 households in the most affected areas in Khyber Pakhtoonkhwa and South Punjab including Nowshera, Khushab, Bhera, Rahim Yar Khan and Bahawalpur. In total, the relief drive will cost US$ 750,000. Kashf Foundation has appealed for generous donations for the drive.

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