ADB okays $155 mln to help boost Pakistan women’s access to finance. The Asian Development Bank (ADB) has greenlit a substantial financing package of $155.5 million for Pakistan, marking a strategic move to bolster policy reforms that enhance women’s access to finance and foster the growth of women-led micro, small, and medium-sized enterprises (MSMEs).
This multifaceted financial support includes a $100 million policy-based loan, a $50 million financial intermediation loan, and a $5.5 million grant.
The primary objective of the $100 million policy-based loan is to champion legal and regulatory changes facilitating improved access to finance for women in Pakistan.
This injection of capital aims to revolutionize the country’s financial landscape, specifically targeting the prevailing gender finance gap, which presently stands at 34%.
An instrumental component of this initiative is the backing of key policies, such as the State Bank of Pakistan’s groundbreaking Banking on Equality Policy.
This policy mandates financial institutions to establish dedicated departments aimed at providing specialized services to women.
Concurrently, the $50 million financial intermediation loan is positioned to empower participating financial institutions, enabling them to extend credit to women entrepreneurs.
This significant financial boost is anticipated to benefit approximately 2 million women entrepreneurs, with a specific focus on assisting around 510,000 who have hitherto lacked access to financial resources.
The overarching goal is to narrow the gender gap in entrepreneurship while concurrently formalizing and elevating women-led enterprises.
Complementing these loans is a $5.5 million grant from the Asian Development Fund (ADF), dedicated to financing pivotal activities.
These include the development of robust financial literacy programs and the establishment of a digital platform designed to connect women with essential financial services.
The ADF, known for providing grants to the most economically vulnerable countries within the ADB framework, plays a crucial role in supporting initiatives that empower women economically.
Yevgeniy Zhukov, ADB’s Director General for Central and West Asia, underscored the significance of fostering equal economic opportunities for women in achieving holistic, resilient, and sustainable development.
This strategic initiative seeks to address the current disparities in female labor force participation (currently at 23%) and women’s entrepreneurship (mere 4%) in Pakistan.
As ADB okays $155 mln to help boost Pakistan women’s access to finance, the program aims to recognize and amplify the role of women entrepreneurs, fostering their participation in the formal economy and making substantial contributions to the nation’s economic trajectory.
