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ADB approves $155.5mn funding to boost female access to finance in Pakistan

  • Says that while Pakistan’s financial inclusion has been improving, women are increasingly left behind with a large gender finance gap which currently stands at 34%
Published December 11, 2023

The Asian Development Bank (ADB) approved on Monday $155.5 million in financing for Pakistan to support policy reforms enhancing women’s access to finance and providing credit to women-led micro, small, and medium-sized enterprises.

As per a statement, the financing comprises a $100 million policy-based loan that supports legal and regulatory reforms that will help women to better access finance; a $50 million financial intermediation loan that will enable participating financial institutions to lend to women entrepreneurs; and a $5.5 million grant that will finance related activities.

“Inclusive, resilient and sustainable development cannot be achieved if women do not have equal economic opportunities and benefits,” said ADB Director General for Central and West Asia Yevgeniy Zhukov.

“ADB’s new program will help transform Pakistan’s current financing ecosystem to help women to access much-needed finance and empower them to boost their livelihoods while contributing significantly to the economy.”

The multinational noted that female labor force participation in Pakistan currently stands at only 23%.

“The country also has among the lowest rates of women’s entrepreneurship in the world at 4% of female working-age adults,” said ADB.

The bank said that while Pakistan’s financial inclusion has been improving, women are increasingly left behind with a large gender finance gap which currently stands at 34%.

“There are many women entrepreneurs in Pakistan, but they remain unrecognized, being small and informal in nature and lacking the incentives to register their businesses formally or to grow,” said ADB Senior Financial Sector Economist Andrew McCartney.

“Policies must recognize the importance of women entrepreneurship and create an enabling environment that increases women’s participation in the formal economy and gives them more opportunities to grow their businesses.”

The ADB said that the policy-based loan of $100 million supports reforms that incorporate women’s needs into national policies, such as the State Bank of Pakistan’s (SBP) Banking on Equality Policy that requires banks to establish departments dedicated to providing services to women.

The ADB said it supports measures enabling women’s access to credit and credit alternatives through digital channels, providing financial training and advisory services to women, and improving the working conditions of women within the finance sector.

Meanwhile, the $50 million financial intermediation loan is expected to benefit around 2 million women entrepreneurs, including about 510,000 who previously had no access to finance, through lending via participating financial institutions, said ADB.

Lastly, the $5.5 million grant from the Asian Development Fund (ADF) will finance activities such as the development of financial literacy programs and a digital platform that links women to financial services.

Last week, ADB approved three projects totalling $658.8 million in Pakistan, which would allow the country to achieve its goal of more inclusive and sustainable growth and development.


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DR.A.BASHIR Dec 11, 2023 06:39pm
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Azam khan Dec 11, 2023 08:10pm
All banks should vigorously advertise creterian of disbursement of loans to women-led micro, small, and medium-sized enterprises. It shall ensure transparency
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Muhammed Dec 11, 2023 08:31pm
Hundreds of such DUBIOUS loans have been GRANTED by various international lenders to date. Where all that billions of money have gone nobody knows & the nation continues to incur interest & pay with instalments. Most corrupt bureaucracy of this PAK land are always more than happy to sign such loan agreements for their own people interest.
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Farooq azam Dec 12, 2023 12:13pm
I'm from remote area of Pakistan I never seen and heard such types of loans have been granted from banks and other landers to underprivileged and vulnerable women I don't know whom is given and who is able to take loans
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