WASHINGTON: The World Bank has approved $102 million for the Resilient and Accessible Microfinance (RAM) Project to strengthen Pakistan’s microfinance sector and support borrowers facing climate-related challenges.
“Microfinance is vital for Pakistan’s vulnerable communities. This project will ensure financial services remain accessible, especially in rural areas,” said Najy Benhassine, World Bank Country Director for Pakistan. He added that it aligns with the Bank’s 10-year plan for financial inclusion and climate resilience.
The project will benefit 1.89 million people, including over 1 million women and 350,000 youth. It will provide financial support to microfinance institutions, ensuring continued access to credit for individuals and small businesses, including ‘recovery loans’ for stability.
“The project builds on lessons from the 2022 floods and will empower low-income communities, particularly women and small farmers,” said Task Team Leader Namoos Zaheer.
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Implemented by the Finance Ministry through the State Bank of Pakistan, it includes a Climate Risk Fund, use of agrotechnology, capacity building for microfinance institutions, and risk management frameworks.
The project is also backed by a $23 million grant from the Global Shield Financing Facility (GSFF), a fund supported by Canada, Germany, Japan, Luxembourg, and the UK, aimed at helping vulnerable nations cope with climate-related risks.
Since joining the World Bank in 1950, Pakistan has received over $48.3 billion in assistance. Currently, the Bank is supporting 54 projects in the country, with a total commitment of $15.7 billion.
