IFC Approves $10 Million Loan for Women and Small Businesses in Pakistan

Meanwhile, the International Finance Corporation (IFC), a member of the World Bank Group, has provided a $10 million loan to ASA Microfinance Bank (Pakistan) Limited to expand access to finance for women entrepreneurs and microbusinesses throughout Pakistan.

Key points

• The investment is backed by the International Development Association Private Sector Window Blended Finance Facility and will be processed under IFC's MSME Finance Platform.
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• While women face a significantly wider gap in access to formal financial services, around 39 percent of MSMEs are considered credit constrained.
• The investment comes as access to formal financial services remains limited in Pakistan.

Meanwhile, the four year loan will provide ASA Microfinance Bank with extra liquidity to expand its lending to women borrowers and backing the bank as it continues to strengthen and grow its operations.

In practice, the investment is backed by the International Development Association Private Sector Window Blended Finance Facility and will be processed under IFC's MSME Finance Platform. It supports financial institutions providing financing to small businesses in emerging markets. Govt Wants Pakistani Halal Businesses to Compete Globally.

Notably, the investment comes as access to formal financial services remains limited in Pakistan. While the country's micro, small and medium enterprise finance gap is estimated at approximately $57.8 billion, equivalent to 20 percent of gross domestic product, only 27 percent of Pakistani adults have access to a bank account.

While women face a significantly wider gap in access to formal financial services, around 39 percent of MSMEs are considered credit constrained. The share of women with access to a formal account is 30.4 percentage points lower than that of men.

As part of the investment, IFC will additionally provide advisory services to assist ASA Microfinance Bank improve its gender disaggregated data reporting systems and practices. The initiative is intended to support the bank better understand and serve the financial needs of women borrowers.

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For now, IFC Approves $10 Million Loan for Women and Small Businesses in Pakistan remains the part of the story worth watching, and further updates are likely as more details are confirmed.