WORLD BANK APPROVES $102 MILLION TO STRENGTHEN PAKISTAN’S MICROFINANCE SECTOR

An Emirati Magazine publication – Released on March 20, 2025 | www.emiratimagazine.com

The World Bank has approved a $102 million package to strengthen Pakistan’s microfinance sector, particularly in rural areas facing climate-related challenges. The Resilient and Accessible Microfinance (RAM) project, implemented by Pakistan’s Ministry of Finance through the State Bank of Pakistan, aims to sustain financial services amid increasing climate risks.

A key component of the project includes a Climate Risk Fund, the adoption of agrotechnology solutions, capacity-building for microfinance institutions, and enhanced risk management frameworks. The initiative is co-financed by a $23 million grant from the Global Shield Financing Facility, backed by multiple governments, including Canada and the UK, to enhance financial protection against climate shocks.

The RAM project is set to benefit 1.89 million people, particularly women and youth, by increasing access to microcredit and recovery loans for financial stability. This initiative aligns with the World Bank’s broader commitment to financial inclusion and resilience in Pakistan, reinforcing economic stability and long-term growth.