Sarhad  Rural  Support  Programme (SRSP)

SRSP was established in 1989, as a private, non-government, non-profit organization, following the model successfully developed by the Aga Khan Rural Support Programme (AKRSP), and received assistance from the Government of the North West Frontier Province, AKRSP and USAID. SRSP's development model evolved from the experiments in participatory rural development initiated in Pakistan over the last 35 years, like the rural development initiatives by Dr Akhtar Hameed Khan in Commilla, IRDP Daudzai (NWFP), the Orangi Pilot Project (OPP) in Karachi and also with experience of participatory community development programs in the Northern Areas and Chitral.

SRSP's approach emphasizes the participation of the marginalised rural communities at all levels as planners, designers, implementers and maintainers for a process of sustainable development. SRSP believes in a people centred participatory approach.

The SRSP mobilizes grass-root communities to form local institutions called Community Organizations (CO), which are then used as vehicles for building the self help capacity and potential of the communities they operate in. These organisations are also a vehicle to identify and undertake a variety of diverse developmental projects related to, for example, credit and savings, infrastructure development, natural resource management, enterprise promotion, and social development - with particular attention to gender equity concerns. In its microcredit operations, SRSP work through groups of 30 to 40 members.

The Sarhad Rural Support Programme operates in the rural regions of Peshawar, Abbottabad, Mansehra, Kohat in the North West Frontier Province.  It covers 12 districts and reach 6,000 community organisations.

SRSP’s microfinance services has reached a total 19,960 clients across the NSWP, from both genders, but is still biased towards men.

  As of 30 September 2003

SPRSP aims to raise the income and quality of life of men and women, especially the poorest of the poor, living in its program area.

  As of 30 September 2003

SRSP is currently making efforts to improve its microfinance operations by restructuring its management structure, adopting new lending methodologies and putting a stronger emphasis on cost recovery.

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As of September 2003 SRSP’s Portfolio at Risk (based on clients late more than six months) is very high at 69%, which is far exceeding the best practice policy of 5% for 30 days delinquency.  In addition, loan distributions fell far short of target, only 20% of the allocated funds were disbursed.  The cumulative repayment rate is also below average at 89%, while the sustainability ratio of 23% shows the difficulties of reaching operational viability.

  As of 30 September 2003

SRSP faces many challenges in its social mobilization strategy, due to the diversity of the physical landscape, with difficult terrain and long distances, the isolation and conservatism of some of the served communities, and the smaller endowment in comparison to other provinces. Moreover, the integration of microfinance and social services results in additional difficulties, in identifying cost structure, improving efficiency, specializing in microfinance, and aiming at sustainability of operations. All these challenges results in a portfolio heavily burdened with arrears, and low recovery rates.

SRSP borrows from the PPAF to finance a major proportion of its loan portfolio. It also collaborates with the Bank of Khyber, which lends to SRSP group members who want to obtain a loan above the SRSP loan size ceiling.

• Web site: www.kohat.sdnpk.org/SRSP.html

• Rural Support Programmes Network web site: www.rspn.org

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