Maps
Magazine

TRADE & ECONOMY

World Bank Approves $102M for Pakistan’s Microfinance Resilience
World Bank approves $102M to boost Pakistan’s microfinance sector & support vulnerable borrowers against climate shocks. Project aims to benefit 1.89M people, including women & youth.
ND
by News Desk
2025-03-19
World Bank Approves $102M for Pakistan’s Microfinance Resilience

The World Bank has approved $102 million in financing for Pakistan under the Resilient and Accessible Microfinance (RAM) Project, aimed at expanding access to microcredit and strengthening the resilience of the country’s microfinance sector, particularly in the face of climate-related challenges.

The financing was approved by the World Bank’s board of directors on Tuesday, as confirmed by a statement from the World Bank’s Resident Mission in Islamabad. The project is designed to ensure that financial institutions continue to provide essential services to vulnerable communities, even during economic and climate-induced crises.

Enhancing Financial Inclusion

“Microfinance is a critical tool for supporting the livelihoods of vulnerable populations in Pakistan,” said Najy Benhassine, the World Bank’s Country Director for Pakistan. He emphasized that the initiative aligns with the World Bank’s broader commitment to financial inclusion and climate resilience under its 10-year Country Partnership Framework.

According to the World Bank, the project will benefit approximately 1.89 million individuals, including over one million women and 350,000 youth, primarily in low-income rural areas. It will ensure that microfinance institutions have the necessary financial resources to continue operations and provide essential services even during financial strains caused by climate shocks.

“The project will provide increased access to microcredit for individuals and small businesses, including recovery loans to help them regain financial stability,” the World Bank statement added.

Learning from the 2022 Floods

Namoos Zaheer, the project’s task team leader, highlighted that the initiative was shaped by lessons learned from Pakistan’s devastating 2022 floods. “It will enhance economic empowerment and resilience, especially for small farmers, women, and rural families who are most affected by climate shocks,” she said.

The project will be implemented by the Ministry of Finance through the State Bank of Pakistan and is expected to be the first in a series of interventions to strengthen the microfinance sector. It will also introduce climate risk management strategies, financial literacy programs, and the innovative use of agrotechnology solutions to support borrowers.

Global Partnership & Funding

The RAM project is co-financed by a $23 million grant from the Global Shield Financing Facility (GSFF), a multi-donor trust fund hosted by the World Bank. The GSFF, backed by Canada, Germany, Japan, Luxembourg, and the United Kingdom, aims to provide financial protection for vulnerable populations facing climate-induced crises.

Since joining the World Bank in 1950, Pakistan has received approximately $48.3 billion in assistance. The Bank’s current portfolio in the country includes 106 projects, with a total commitment of $17 billion across key sectors such as energy, private sector development, financial inclusion, and service delivery.

With the RAM project now approved, Pakistan’s microfinance sector is set to receive critical support to ensure continued access to financial services for those who need them most.
Tagged:

Pakistan

WorldBank

FinancialInclusion

ClimateResilience

Microfinance

EconomicEmpowerment
Share News: