World Bank Bolsters Pakistan's Microfinance Amid Climate Risks

The World Bank has approved USD 102 million to aid Pakistan's microfinance sector, focusing on resilience against climate shocks. The Resilient and Accessible Microfinance (RAM) project aims to support over 1.89 million individuals, primarily women and youth, by providing access to microcredit and strengthening financial institutions.

The World Bank has greenlit a crucial USD 102 million project aimed at shoring up Pakistan's microfinance sector, particularly its resilience against climate-related challenges. This initiative, spearheaded by the newly introduced Resilient and Accessible Microfinance (RAM) project, was set in motion by the World Bank's board this Tuesday.

According to Najy Benhassine, the World Bank's country director for Pakistan, microfinance plays a vital role in sustaining the livelihoods of the nation's vulnerable communities. He emphasized that this project is part of a larger commitment to financial inclusion and climate change resilience outlined in the new 10-year Country Partnership Framework, benefitting around 1.89 million residents, including women and youth.

In partnership with the State Bank of Pakistan, the project will introduce key components such as a Climate Risk Fund, innovative agrotechnology solutions, and enhanced risk management frameworks. Co-financed by a USD 23 million grant from the Global Shield Financing Facility, the project stands to aid financial protection against climate-induced pressures.

(With inputs from agencies.)