Pakistan, Oct. 8 -- Finance Minister Muhammad Aurangzeb on Wednesday urged the microfinance sector to shift towards cashflow-based lending and make greater use of alternative data and digital credit scoring to expand access to finance for small businesses and farmers.

"Within the context of microfinance as well, we need to move towards cashflow-based lending, rather than always focused on collateral," said Aurangzeb, while speaking virtually at the 10th Annual Microfinance Conference organised by the Pakistan Microfinance Network at Karachi.

"I would look forward to your deliberations and your suggestions after the next couple of days."

Aurangzeb also urged microfinance institutions to focus on bringing new borrowers into the financial...