Finance Minister & World Bank Discuss Funding for Social Protection and Microfinance Programs in Pakistan
Islamabad – The Minister for Finance, Revenue, and Economic Affairs held a productive meeting with the Country Director of the World Bank for Pakistan Najy Binhassine, and his team. The discussions focused on reviewing and finalizing the financing for two World Bank-funded operations in Pakistan.
The first operation involves additional financing of US$250.0 million for the ongoing World Bank-funded program titled “Crisis-Resilient Social Protection Program (CRISP).” Implemented by the Benazir Income Support Program (BISP), CRISP aims to develop a more adaptive social protection system, contributing to the resilience of poor and vulnerable households in the face of future crises.
The second program, “Resilient and Accessible Microfinance (RAM) Program,” is worth US$175.0 million. This initiative aims to enhance access to microcredit and support the resilience of the microfinance sector and its borrowers in Pakistan.
Recognizing the significance of interventions planned under the CRISP program, the Finance Minister provided preliminary approval for engaging in additional financing of US$250 million. She expressed the need for another meeting to formalize program contours and invited the State Bank of Pakistan and the Security and Exchange Commission of Pakistan to finalize program modalities.
The World Bank team briefed the Minister on the RAM program, outlining its funding volume and objectives. The microfinance sector in Pakistan has exhibited resilience despite external shocks, but its growth and resilience are currently hindered by capital, liquidity, and climate-related constraints. The proposed program aims to overcome these challenges, ensuring a more resilient, inclusive, and growing microfinance sector in Pakistan.
During the meeting, the issue of public debt was discussed in relation to raising loans for supporting Microfinance Banks and Microfinance Institutions. The Minister proposed that interventions of this nature would be better supported by mobilizing local resources instead of relying on foreign loans.
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Following a detailed presentation and discussions, the FM requested further refinement of the background work for the program and data sets to ensure accuracy. She urged the World Bank team to continue collaborating with the IFC team on the program.
The Minister expressed appreciation for the continuous support of the World Bank to Pakistan. The meeting concluded with a vote of thanks, highlighting the commitment to strengthening social protection and microfinance initiatives in the country.
