World Bank approves $102m for Pakistan’s RAM project

ISLAMABAD: In a recent development to provide financial aid to Pakistan, the World Bank has approved 102 million dollars for the Resilient and Accessible Microfinance (RAM) project, which aims to provide efficient access to microcredit and support the resilience of the microfinance sector and its borrowers.

According to the World Bank Director for Pakistan Najy Benhassine, “Microfinance is a critical tool for supporting the livelihoods of vulnerable, needy populations in Pakistan.

In order to ensure that the microfinance industry can continue to offer crucial financial services to people who need them most, especially in rural regions, this initiative will help increase the sector’s resilience, especially in the face of growing climate risks.

As stated in our new 10-year Country Partnership Framework, Najy Benhassine stated that this project is a component of our larger commitment to advancing financial inclusion in Pakistan and enhancing climate change resilience.

Nearly 1.89 million people (including over 1 million women and over 350,000 youth) are anticipated to benefit from the RAM Project, according to a World Bank statement, particularly those living in low-income and vulnerable rural communities in Pakistan.

The project guarantees that microfinance institutions may continue to offer services even in the face of financial strains brought on by climate change by giving them financial resources. In order to help people and small companies achieve financial stability, the project would expand their access to microcredit and offer them “recovery loans.”

Namoos Zaheer, the project’s task team leader, remarked, “The Resilient and Accessible Microfinance Project is a significant step to bolster financial inclusion in Pakistan and was designed based on lessons learned from the devastating floods of 2022.”

“It will increase the resilience and economic empowerment of those at the bottom of the economic pyramid, especially small farmers, women, and rural families who are more vulnerable to climate shocks.”

The State Bank of Pakistan will carry out the project on behalf of the Ministry of Finance. It will be the first of several initiatives to help the industry, and it will be planned and implemented in close collaboration with major global financial institutions.