World Bank approves $102m for Pakistan’s financial inclusion

The World Bank (WB) has approved $102 million in financing for Pakistan’s Resilient and Accessible Microfinance (RAM) Project, aimed at expanding access to microcredit and strengthening the resilience of the microfinance sector and its borrowers, particularly against climate-related challenges.

World Bank Country Director for Pakistan, Najy Benhassine, emphasized the importance of microfinance in supporting vulnerable communities. “Microfinance is a critical tool for sustaining livelihoods in Pakistan. This project will help fortify the sector against growing climate risks, ensuring continued access to essential financial services, especially in rural areas.”

Benhassine highlighted that the initiative aligns with the World Bank’s 10-year Country Partnership Framework, which focuses on promoting financial inclusion and enhancing climate resilience in Pakistan.

According to the WB’s statement, the RAM Project is expected to benefit 1.89 million people, including over 1 million women and 350,000 youth, primarily from low-income rural communities.

The project will provide financial resources to microfinance institutions, ensuring their stability even during climate-induced economic challenges. It will also offer recovery loans to individuals and small businesses, helping them regain financial stability and secure long-term economic opportunities.

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