- The program aims to improve women’s access to finance.
- It is based on previous political reforms introduced in the first phase.
- $ 300 million is allocated as a loan -based loan.
Karachi: In order to promote financial inclusion and women’s entrepreneurship, Pakistan and the Asian Development Bank (BAD) signed a 350 million dollars loan agreement, The news reported Wednesday.
Sabina Qureshi, additional secretary of the economic affairs division, and Dinesh Raj Shiwakoti, head of the BAD project administration unit, signed the agreement. As part of the greater financial package, the Pakistan State Bank (SBP) has signed a related project agreement for a financial loan of $ 50 million (FIL).
The program aims to improve women’s access to finance, extend economic opportunities and promote fair employment practices in the financial sector. It is based on previous political reforms introduced in the first phase of the initiative.
Sub-program II focuses on four key areas: the strengthening of the political and regulatory framework for the financial inclusion of women, expanding financial services adapted to women, stimulating the entrepreneurship skills of women and encouraging inclusive reforms of the workplace within financial institutions.
Funding will support the second phase of the women’s financial sector development program. On the total funding of $ 350 million as part of the program, $ 300 million are allocated as a loan -based loan, the remaining $ 50 million led by the FIL mechanism to support loans via financial intermediaries.
“The program is ambitious in order to reach out to more than two million women in Pakistan to help them achieve their potential, thanks to a combination of access to finance, inclusive legal and political reforms and the expansion of entrepreneurship capacities,” said BAD director Sani Ismail.
The program is aligned with the 2021-2025 national partnership strategy to stimulate the representation of women in the economy.
Pakistan has the second lowest ranking among 146 economies in the world of gaps between the sexes in 2024. A key requirement to include women in the country’s economic development is to reduce the constant expansion of access to finance which is currently 37% in 2024.