The World Bank has approved a $102 million loan for Pakistan under the Resilient and Accessible Microfinance (RAM) Project. This initiative, part of the new 10-year Country Partnership Framework (CPF), aims to strengthen the country’s microfinance sector, particularly in the face of rising climate-related risks.
The project will be administered by the Ministry of Finance and the State Bank of Pakistan (SBP), ensuring that microfinance institutions can continue to provide critical financial services to vulnerable populations during climate-induced economic disruptions. It is expected to benefit around 1.89 million people, including over 1 million women and 350,000 youth, by improving access to credit and financial security.
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World Bank Country Director for Pakistan, Najy Benhassine, emphasized that the project is essential for supporting the livelihoods of those most affected by climate risks, especially in rural areas. The initiative builds on lessons learned from Pakistan’s devastating 2022 floods, which severely impacted small businesses, farmers, and low-income households.
In addition to the $102 million loan, the project is co-financed by a $23 million grant from the Global Shield Financing Facility (GSFF), with support from international donors including Canada, Germany, and the UK. The RAM project includes strategic components such as climate risk funds, agrotechnology solutions, and capacity building for financial institutions.
