Amidst a politically and economically challenging environment, PGMF has successfully supported local communities throughout Myanmar for more than 25 years. Through partnerships with the government, UNDP, LIFT, USAID, other donors and the people of Myanmar, PGMF has served2.3 million clients in nearly 15,000 villages, advancing PGMF’s mission of creating a world where communities lead their own development.

In 1997, Pact began implementing UNDP’s Microfinance Programme in the Central Dry Zone of Myanmar and soon began to expand to the grassroots level. In 2006, UNDP awarded Pact the management of the entire program in the Dry Zone, Delta and Shan State. Meanwhile, Pact expanded its microfinance work in Myanmar independent of UNDP. By establishing a memorandum of understanding with the Ministry of Health, it was able to implement a health-linked microfinance project financed by the Stromme Foundation in 2005. Over the years, Pact added new funding from various donors to build a smaller but equally successful version of its operations under UNDP.

In November 2011, the government of Myanmar passed the Myanmar Microfinance Law, legalizing microfinance operations and providing for a licensing system for microfinance institutions. In early 2012, PGMF was established and received a microfinance business license, all microfinance work under Pact was moved to PGMF.

As soon as the government of Myanmar legalized microfinance through the new law, UNDP began considering options for transforming its microfinance program into an MFI and divesting itself of the project. Although UNDP considered a range of options from transferring the project to the government to putting it up for tender, all stakeholders agreed on one basic tenet—whatever the new form may be, clients must continue to be served. Eventually, all stakeholders agreed that Pact must continue to manage the project. In June 2014, UNDP and Pact signed the transfer agreement, officially giving PGMF ownership of the project it had been managing for 17 years. In return, PGMF agreed to contribute to the development of the Myanmar microfinance sector. At the time of the transfer, the microfinance program was operating in 26 townships; altogether, the newly enlarged PGMF was serving 51 townships.

Since this time, PGMF has continued to grow and serve more clients across the country. In 2015, PGMF opened operations in seven new townships, bringing the total to 58. In its quarter-century history, PGMF has served 2.3 million clients, mostly women, across thousands of villages in Myanmar.

For the past several years, PGMF has been working diligently to secure registration as a private company, in line with a government law that prevents INGOs and NGOs from conducting microfinance operations in the country after June 30, 2023. In recent months, the government has demanded that as a price for approval to register as a company, PGMF hand over a share of the organization’s profits and that all its assets go to the government in the future. This is not possible for us to accept, for many reasons. The government also banned PGMF from providing new loans to existing clients or taking on new clients, leading PGMF to place a moratorium on loan repayments in May 2023. The government has also denied visas for PGMF’s senior leadership. The Myanmar Registration Law, enacted last year, imposes criminal penalties, including imprisonment, on NGOs for not complying with its registration rules. By denying us the ability to register, the government has forced us either to leave Myanmar or to operate illegally, at extreme risk to our staff.

Despite the circumstances we find ourselves in today, PGMF is proud of its many accomplishments in providing a lifeline to the rural poor, despite often challenging circumstances. We want to thank our clients, partners, lenders, and hard-working PGMF family of employees for their support. We stand ready to reenter the space if conditions permit.