The World Bank has approved USD 102 million in financing for Pakistan’s Resilient and Accessible Microfinance (RAM) Project to strengthen access to microcredit and improve the resilience of the microfinance sector and its borrowers to climate-related shocks. The project is expected to benefit nearly 1.89 million people, including more than 1 million women and over 350,000 youth, with a focus on vulnerable and low-income rural communities. It will provide financial resources to microfinance institutions to help them sustain service delivery during climate-induced stress and support individuals and small businesses through “recovery loans”. Key components include establishing a Climate Risk Fund, deploying agrotechnology solutions, building microfinance institutional capacity, and developing risk management frameworks. Implementation will be led by the Ministry of Finance through the State Bank of Pakistan, and the project is co-financed by a USD 23 million grant from the Global Shield Financing Facility. The RAM Project is described as the first in a series of interventions to support Pakistan’s microfinance sector, to be designed and phased in partnership with other international financial institutions.
World Bank 2025-03-18
World Bank approves USD 102 million Resilient and Accessible Microfinance project to expand microcredit and climate resilience in Pakistan
The World Bank approved USD 102 million for Pakistan's Resilient and Accessible Microfinance (RAM) Project to enhance microcredit access and sector resilience against climate shocks. Targeting 1.89 million beneficiaries, it focuses on vulnerable rural communities and includes a Climate Risk Fund and agrotechnology solutions. Co-financed by a USD 23 million grant from the Global Shield Financing Facility, the project will be implemented by the Ministry of Finance through the State Bank of Pakistan.