ISLAMABAD: The government has ensured credit disbursement to the microfinance sector, as gross loan portfolio raised from Rs 46 billion in 2013 to Rs 104 billion in 2016. Microfinance providers’ effective interest rates are broadly in range of 25 to 40 percent, however, microfinance banks annualised interest rates are within range of 25 to 30 percent. The interest rates in microfinance banking industry are market-driven, sources at the finance division said on Sunday. The sources said microfinance banks are regulated by State Bank of Pakistan (SBP) under Microfinance Institutions Ordinance 2001, and SBP’s Prudential Regulations for MFBs, while non-bank microfinance institutions are regulated by Securities and Exchange Commission of Pakistan (SECP). Furthermore, SECP introduced separate regulatory framework to regulate non-bank microfinance institutions by making necessary amendments in current regulatory framework for non-banking finance companies.