- The World Bank approves financing for the RAM Project.
- It will help strengthen the resilience of the microfinance sector.
- The project is expected to benefit almost 1.89 million people.
The World Bank Board of Directors on Wednesday approved $ 102 million in financing for the resistant and accessible microfinance project (RAM), whose objective is to improve access to microcredit and support the resilience of the microfinance sector and its borrowers, particularly in the face of climate -related clashes.
In a statement, Najy Benhassine, World Bank director for Pakistan, said: “Microfinance is a critical tool to support the livelihoods of vulnerable populations in Pakistan.”
This project, he said, would help strengthen the resistance of the microfinance sector, particularly in the face of the growing climatic risks, ensuring that the sector can continue to provide essential financial services to those who need them most, especially in rural areas.
Benhassine added that this project is part of our broader commitment to promote financial inclusion in Pakistan and increase resistance to climate change, as explained in our new framework of association of 10 -year countries.
The RAM project is expected to benefit almost 1.89 million people (including more than 1 million women and more than 350,000 young people), especially those in vulnerable and low -income rural communities.
By providing financial resources to microfinance institutions, the project guarantees that they can continue providing services even during climate -induced financial pressures.
The project will provide greater access to microcredit for individuals and small businesses, providing them with ‘recovery loans’ to help them obtain financial stability.
Zaheer Namo, leader of the task team for the project, said: “The resistant and accessible microfinance project has been designed according to the lessons learned from the devastating floods of 2022 and is a significant step to reinforce financial inclusion in Pakistan.”
“It will improve the economic empowerment and resistance of those at the bottom of the economic pyramid, particularly women, small farmers and families in rural areas that are more prone to climatic shocks.”
The project will be implemented by the Ministry of Finance through the State Bank of Pakistan. It will be the first of a series of interventions to support the sector, which is designed and eliminated in close association with other international financial institutions.
The key project components include the establishment of a climate risk fund, the innovative use of agrotechnological solutions, the development of capacities for microfinance institutions and the development of risk management frameworks to improve the resilience of the sector.
The project is co -financed by a subsidy of $ 23 million from the Global Shield Financing Fund (GSFF), a multi -donor fiduciary fund organized by the World Bank group and financed by the Governments of Canada, Germany, Japan, Luxembourg and the United Kingdom.
Pakistan has been a member of the World Bank since 1950. Since then, the World Bank has provided more than $ 48.3 billion in assistance. The current portfolio has 54 projects and a total commitment of $ 15.7 billion.
