ADB announces $350m loan for Pakistan to boost women's role in economy

• Programme aims to improve women’s access to finance.
• It builds on earlier policy reforms introduced under first phase.
• $300 million is allocated as a policy-based loan.
  

KARACHI: In order to promote women's financial inclusion and entrepreneurship, Pakistan and the Asian Development Bank (ADB) have inked a $350 million loan deal, The News reported on Wednesday.

Sabina Qureshi, additional secretary of the Economic Affairs Division, and Dinesh Raj Shiwakoti, the head of ADB's Project Administration Unit, signed the agreement. As part of the larger finance package, the State Bank of Pakistan (SBP) signed a related project agreement for a $50 million Financial Intermediary Loan (FIL).

The programme aims to improve women’s access to finance, expand economic opportunities and promote equitable employment practices across the financial sector. It builds on earlier policy reforms introduced under the first phase of the initiative.

Subprogramme II focuses on four key areas: strengthening the policy and regulatory framework for women’s financial inclusion, expanding financial services tailored for women, boosting women’s entrepreneurship skills and encouraging inclusive workplace reforms within financial institutions.

The funding will support the second phase of the Women-Inclusive Finance Sector Development Program. Of the total $350 million financing under the programme, $300 million is allocated as a policy-based loan, with the remaining $50 million directed through the FIL mechanism to support lending via financial intermediaries.

“The programme is ambitious with a goal to reach out to over two million women in Pakistan to help them fulfill their potential, through a combination of access to finance, inclusive legal and policy reforms, and expanding capacity for entrepreneurship,” said ADB Director Sani Ismail.

The programme is aligned with the government’s Country Partnership Strategy 2021–2025 to boost the representation of women in the economy.

Pakistan has the second-lowest ranking among 146 economies in the Global Gender Gap Index in 2024. A key requirement to include women in the economic development of the country is to reduce the ever-expanding gap in access to finance which currently stands at 37% in 2024.