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| Brief History | Methodology | Area of Operations | Clients | Poverty Focus |
| Distinctive Features | Innovations | Financial Results | Challenges & Development Plans | Inclusion in Financial Sector |
Orix
Leasing Pakistan was established in 1986 as a private limited-liability company. In March 1988, the company changed its
status to a public company with an initial public offering oversubscribed 17
times. As a subsidiary of ORIX Corporation, Japan, it operates as a leading
leasing company in Pakistan thanks to the strength of its extensive branch
network, a diversified portfolio of over 3,000 clients and a wide range of
financial products. In 1993-1994, OLP was the first leasing company to be
selected by the World Bank as a medium for financing Pakistani micro
enterprises. It later received financial assistance and credit lines from FMO (a
Dutch lending organization) and the Swiss Agency for Development Cooperation (SDC).
Currently Orix provides leasing services to a variety of microenterprises operating in the agriculture, livestock and retail sectors. A brief explanation of leasing methodology is provided under the section “Innovations”.
Through a partnership with the NGO ASASAH, OLP has provided microcredit services to more than 1,360 female borrowers, using a solidarity group methodology and loans of an average size of Rs.10,000.
OLP has a wide branch network comprising of eight offices in
major cities throughout Pakistan.
These city branches are located in Karachi, Lahore, Faisalabad, Sialkot,
Islamabad, Peshawar, Multan and Hyderabad.
Orix Pakistan extends
it leasing services to microenterprises throughout Pakistan’s five
provinces
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OLP provides traditional microfinance products (i.e. loans) and micro-leasing products through its partnership with NGOs and support from SDC. It also plans to become directly involved in microfinance services on a large scale.
With financial assistance of SDC, OLP provides lease finance to fully cured patients of Marie Adelaide Leprosy Centre. So far, 59 patients in Karachi and Peshawar have benefited from the lease products, provided on soft conditions. A similar program has been implemented with disabled people.
In addition, a brief introduction to the methodology of
leasing and its place in the greater goal of poverty alleviation in Pakistan is
provided in the “Innovations” section.
Orix Pakistan is a listed company on the Karachi, Islamabad and Lahore Stock Exchanges. As a result it publishes its figures in accordance with those regulations. Figures regarding Portfolio Quality are unavailable at this time.
However in terms of financial sustainability Orix is operating at a significant profit. The company’s before tax profit was Rs. 147.4 million for the period of 2002- December 2003 up 47% on the year previous.
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OLP seeks to partner with NGOs in providing micro-leasing products to their clients who have reached maximum loan size ceiling. In addition it also offers Microenterprise development loans to the clients of these NGOs. OLP plans to propose microfinance products by opening microfinance-oriented branches or sub-branches throughout the country.
Orix was extended a credit line of $26 million for small and micro enterprises by the World Bank in 1993-94. Orix also derives long-term credit lines from IFC (International Finance Corporation), the Asian Development Bank and IBRD (World Bank)
Web site: www.orixpakistan.com
Orix internal documents