The World Bank has approved a $102 million loan for Pakistan’s Resilient and Accessible Microfinance (RAM) Project. This initiative seeks to improve access to microcredit and bolster the resilience of the microfinance sector, especially in the face of climate-related challenges.
World Bank Country Director for Pakistan, Najy Benhassine, emphasized that microfinance is vital for supporting vulnerable populations in Pakistan. He noted that the project aims to strengthen the microfinance sector’s resilience against growing climate risks, ensuring continued provision of essential financial services, particularly in rural areas.
The RAM Project is expected to benefit approximately 1.89 million people, including over 1 million women and more than 350,000 youth, especially those in vulnerable and low-income rural communities. By providing financial resources to microfinance institutions, the project ensures these institutions can continue offering services even during climate-induced financial pressures. It will also facilitate increased access to microcredit and ‘recovery loans’ for individuals and small businesses, aiding them in achieving financial stability.