ADB approved $155.5M financing for Pakistan, boosting women’s financial inclusion. The funding aims to enhance women’s access to finance and support women-led micro, small, and medium-sized enterprises.
The financing includes a $100M policy-based loan for legal and regulatory reforms, improving women’s finance access. Additionally, a $50M financial intermediation loan empowers institutions to extend credit to women entrepreneurs. A $5.5M grant funds activities uplifting women in the economy.
ADB Director General, Yevgeniy Zhukov, stressed equal economic opportunities for inclusive and sustainable development. ADB’s program transforms Pakistan’s financing ecosystem, enabling women to contribute significantly to the economy.
Current challenges include a 23% female labor force participation and only 4% of female adults in entrepreneurship. Despite financial inclusion progress, women face a 34% gender finance gap.
ADB Senior Economist, Andrew McCartney, emphasized policies fostering women’s entrepreneurship. He stated, “Policies must create an enabling environment, increasing women’s participation and business growth.”
The $100M policy-based loan aligns with women’s needs in national policies, including SBP’s Banking on Equality Policy. It mandates banks to establish dedicated departments for women’s services.
The $50M financial intermediation loan aims to benefit 2 million women entrepreneurs, including 510,000 with no previous finance access. The $5.5M ADF grant funds financial literacy programs and a digital platform linking women to financial services.
This follows ADB’s approval of $658.8M projects in Pakistan last week, aligning with goals for inclusive and sustainable growth.
