ISLAMABAD: The World Bank (WB) has approved a loan of $102 million for Pakistan under its Resilient and Accessible Microfinance (RAM) Project.
“Which aims to enhance access to microcredit and support the resilience of the microfinance sector and its borrowers, particularly in the face of climate-related shocks”.
The money approved by the World Bank for Pakistan will be used for the poor farmers affected by climate change, which will give small loans to those affected by climate change.
The World Bank's statement said that the purpose of the money is to increase the income of those affected by climate change, the money is part of the World Bank's 10 -year Country Partnership Program. The project will help increase financial inclusion in small businesses and rural areas.
The World Bank Country Director Najy Benhassine said that microfinance is an important source of financial support to the poor, the project will benefit more than 1.89 million people, including one million women.
According to the World Bank Country Director, 54 projects are underway in Pakistan with the help of the WB. The World Bank's total investment in Pakistan has reached $15.7 billion.
The project will be implemented by the Ministry of Finance through the State Bank of Pakistan (SBP). It will be the first in a series of interventions to support the sector, to be designed and phased in close partnership with other international financial institutions.
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Key components of the project include the establishment of a Climate Risk Fund, innovative use of agrotechnology solutions, capacity building for microfinance institutions, and the development of risk management frameworks to enhance the sector’s resilience.
