The Asian Development Bank (ADB) has granted $155.5 million in financing for Pakistan to support policy reforms aimed at enhancing women’s access to finance and providing credit to women-led micro, small, and medium-sized enterprises.
The financial package includes a $100 million policy-based loan supporting legal and regulatory reforms to improve women’s access to finance, a $50 million financial intermediation loan enabling financial institutions to lend to women entrepreneurs, and a $5.5 million grant for related activities.
ADB Director General for Central and West Asia, Yevgeniy Zhukov, emphasized the importance of equal economic opportunities for women, stating that the program aims to transform Pakistan’s financing ecosystem, empowering women to boost their livelihoods and contribute significantly to the economy.
With female labor force participation at 23% in Pakistan and only 4% of female working-age adults engaged in entrepreneurship, the program addresses the gender finance gap of 34% despite improving financial inclusion.
ADB Senior Financial Sector Economist, Andrew McCartney, highlighted the need to recognize and support women entrepreneurs, emphasizing the importance of creating an enabling environment that fosters women’s participation in the formal economy and provides growth opportunities for their businesses.
The policy-based loan supports reforms aligning with national policies, such as the State Bank of Pakistan’s Banking on Equality Policy, which mandates banks to establish dedicated departments for women’s services. It also focuses on enhancing women’s access to credit through digital channels and improving working conditions for women in the finance sector.
The financial intermediation loan is expected to benefit around 2 million women entrepreneurs, including approximately 510,000 who previously lacked access to finance, through lending by participating financial institutions.
The grant from the Asian Development Fund (ADF) will finance activities such as developing financial literacy programs and a digital platform connecting women to financial services.
As a founding member of ADB, Pakistan has received over $52 billion in loans, grants, and financing since 1966, supporting inclusive economic growth, infrastructure development, energy and food security, transport networks, and social services.
ADB remains committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, with 68 member countries, 49 from the region.
