Washington March 19 2025: The World Bank’s Board of Directors has approved USD 102 million in financing for the Resilient and Accessible Microfinance (RAM) Project to enhance access to microcredit and support the resilience of the microfinance sector and its borrowers, particularly in the face of climate-related shocks.
“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” WB Country Director for Pakistan Najy Benhassine said in a news release.
This project, he said, Pakistan was part of our broader commitment to promoting financial inclusion in Pakistan and to increasing resilience to climate change, as spelled out in our new 10-year Country Partnership Framework.”
The RAM Project is expected to benefit nearly 1.89 million people (including more than 1 million women and over 350,000 youth), especially those in vulnerable and low-income rural communities.
By providing financial resources to microfinance institutions, the project ensures that they can continue to provide services even during climate-induced financial pressures.
The project will provide increased access to microcredit for individuals and small businesses, providing them ‘recovery loans’ to help them gain financial stability.
“The Resilient and Accessible Microfinance Project has been designed based on lessons learned from the devastating floods of 2022 and is a significant step to bolster financial inclusion in Pakistan,” said Namoos Zaheer, Task Team Leader for the Project. “It will enhance economic empowerment and resilience of those at the bottom of the economic pyramid, particularly women, small farmers, and families in rural areas who are more prone to climate shocks.”
The project would be implemented by the Ministry of Finance through the State Bank of Pakistan.
It would 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.
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.
The project is co-financed by a USD 23 million grant from the Global Shield Financing Facility (GSFF).
The GSFF is a multi-donor trust fund hosted by the World Bank Group and financed by the Governments of Canada,
Germany, Japan, Luxembourg and the United Kingdom. GSFF supports poor and vulnerable countries and people with increased access to financial protection against climate shocks, disasters and crises.
