The World Bank has approved financing 102 million for the project, which aims to expand access to micro -credit and support the flexibility of the microfinance sector and its lenders, especially despite the climate shock.
Finance under ‘flexible and accessible microfinance (RAM) Project’ was approved by the World Bank Board of Directors on Tuesday, According to For a news release issued by the World Bank residential mission in Islamabad.
In February, a World Bank delegation visited the country to touch Pakistan’s economic reforms, including the privatization agenda of the Country Framework Program (CPF) in January, with a signaling agenda of about $ 20 billion.
“Microfinance is an important source of support for weaker population lives in Pakistan,” said Private Benasin, Pakistan’s World Bank Country Director.
“This project will help strengthen the flexibility of the microfinance sector, especially despite the rising climate risks, ensuring that the sector can continue to provide the necessary financial services to those who need the most needed, especially in rural areas.
He added, “This project is part of our extensive commitment to promote financial inclusion in Pakistan and increase the flexibility of climate change, as is presented in the framework of our 10 -year country’s new partnership.”
According to the statement, the project will benefit about 1.89 million people, including more than 1 million women and more than 350,000 young people, and especially in the weaker and low -income rural areas.
Through the provision of financial resources to the microfinance institutions, the project will ensure that the companies can continue to provide services during the climate -affected financial pressure.
The statement states that “the project will increase access to micro credit for individuals and small businesses, and will provide them with a ‘recovery loan’ to help them gain financial stability.
The project’s task team leader, Namos Zaheer, said the project was developed on the basis of lessons learned from the devastating floods of 2022 and was an important step in strengthening financial inclusion in Pakistan.
“This will increase economic pyramids, especially women, small farmers and rural areas, economic empowerment and flexibility for families, which are at greater risk of climate shock.”
The project will be implemented by the Finance Ministry by the State Bank of Pakistan. This will be the first to interfere with the sector, which will be made phased in a close partnership with design and other international financial institutions.
The key components of the project include the establishment of the climate risk fund, the latest use of agrootics solutions, the construction of capacity for microfinance companies, and the development of the risk management framework to enhance the flexibility of the sector.
The project has been supported by a $ 23 million grant of the Global Shield Financing Finance (GSFF), a multi -donor trust fund, organized by the World Bank Group and financing the governments of Canada, Germany, Japan, Luxembourg, and the UK.
The GSFF supports people with poor and weaker countries and climate tremors, increasing access to financial protection against disasters and crises.
Pakistan has been a member of the World Bank since 1950. So far, the bank has provided the country to help .3 48.3 billion.
Pakistan is operating under the domestic partnership strategy with four priority sectors of engagement on the bank’s program: energy, private sector development, participation and services.
Present Portfolio for IBRD, IFC and Mega in Pakistan contains 106 projects and total commitment $ 17 billion.
