World Bank stated that loans will be provided to poor and low-income households

The World Bank on Wednesday approved a loan of $102 million for Pakistan for microcredit and microfinance. According to the most recent reports, 1.89 million people would gain from the loan amount. The loan would be given to households with low incomes, according to the World Bank. According to the World Bank, the loan would be distributed by means of the State Bank of Pakistan (SBP) and the Ministry of Finance. It would ensure that microfinance institutions (MFIs) could continue providing financial services, even during climate-induced economic disruptions.

By increasing their access to credit and financial stability, the project is likely to benefit nearly 1.89 million people, including over 1 million women and 350,000 youth. World Bank Country Director for Pakistan Najy Benhassine stressed the importance of the project in supporting the livelihoods of vulnerable populations.
He said, “Microfinance is a critical tool for supporting the livelihoods of vulnerable populations in Pakistan. This project will help strengthen the resilience of the microfinance sector, particularly in the face of growing climate risks, ensuring that the sector can continue to provide essential financial services to those who need them most, especially in rural areas,”.

He stated that the project aligned with the World Bank’s commitment to promote financial inclusion and climate resilience in Pakistan under the CPF.