The World Bank has approved $102 million in funding to improve access to microcredit and enhancing the resilience of the microfinance sector and its borrowers, particularly in response to climate-related challenges.
This funding, granted under the “Resilient and Accessible Microfinance (RAM) Project,” received the World Bank Board of Directors’ approval on Tuesday, as announced in a news release by the institution’s Resident Mission in Islamabad.
In February, a World Bank delegation visited Pakistan to discuss the country’s ongoing economic reforms, including its privatization efforts. These discussions were part of a follow-up to the Country Framework Program (CPF), which was finalized in January and includes indicative assistance totaling approximately $20 billion.
“Microfinance plays a vital role in supporting the livelihoods of Pakistan’s vulnerable communities,” said Najy Benhassine, World Bank Country Director for Pakistan.
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“This initiative will bolster the microfinance sector’s resilience amid increasing climate risks, ensuring the provision of critical financial services to those in need, particularly in rural areas. It also aligns with our broader commitment to promoting financial inclusion and strengthening climate change resilience, as outlined in our new 10-year Country Partnership Framework.”
The project is expected to benefit nearly 1.89 million individuals, including over 1 million women and more than 350,000 young people, focusing especially on vulnerable, low-income populations in rural areas. By providing financial resources to microfinance institutions, the initiative will help these organizations continue offering services even during periods of climate-induced financial stress.
