**World Bank Approves $102M for Pakistan’s Financial Inclusion**
The World Bank has approved $102 million in financing for Pakistan’s Resilient and Accessible Microfinance (RAM) Project. This initiative aims to improve access to microcredit and bolster the resilience of the microfinance sector, especially for borrowers vulnerable to climate-related shocks.
“Microfinance is a critical tool for supporting the livelihoods of vulnerable populations in Pakistan,” said Najy Benhassine, World Bank Country Director for Pakistan. The project focuses on strengthening the sector’s ability to withstand climate risks and continue providing essential financial services, particularly in rural areas. He added that the project aligns with the World Bank’s broader commitment to promoting financial inclusion and climate resilience in Pakistan, as outlined in the new 10-year Country Partnership Framework.
The RAM Project is expected to benefit nearly 1.89 million people, including over 1 million women and 350,000 youth, with a focus on vulnerable and low-income rural communities.
By providing financial resources to microfinance institutions, the project ensures continued service provision even during climate-induced financial pressures. It will also increase access to microcredit for individuals and small businesses, offering “recovery loans” to aid in financial stability.
“The Resilient and Accessible Microfinance Project has been designed based on lessons learned from the devastating floods of 2022 and is a significant step to bolster financial inclusion in Pakistan,” said Namoos Zaheer, Task Team Leader for the Project. He emphasized its role in enhancing the economic empowerment and resilience of those at the bottom of the economic pyramid, particularly women, small farmers, and rural families who are more susceptible to climate shocks.
The Ministry of Finance, through the State Bank of Pakistan, will implement the project. It represents the first in a series of planned interventions to support the sector, developed in close partnership with other international financial institutions.