- Home
- Business
- News
- The Asian Development Bank (ADB) approvees $25 mln loan to expand women's access to credit in Pakist ..
The Asian Development Bank (ADB) Approvees $25 Mln Loan To Expand Women's Access To Credit In Pakistan
Sumaira FH Published August 17, 2019 | 03:19 PM
The Asian Development Bank (ADB) has approved a $25 million syndicated loan to support the lending operations of Kashf Foundation, one of Pakistan's leading microfinance service providers, to low-income households and women-led micro, small, and medium-sized enterprises (MSMEs)
ISLAMABAD, (UrduPoint / Pakistan Point News - 17th Aug, 2019 ):The Asian Development Bank (ADB) has approved a $25 million syndicated loan to support the lending operations of Kashf Foundation, one of Pakistan's leading microfinance service providers, to low-income households and women-led micro, small, and medium-sized enterprises (MSMEs).
The loan will help expand women's access to finance in Pakistan and empower them economically.
"There is a need to improve access to finance in Pakistan, particularly for women in low-income communities as well as women-led enterprises. An inclusive financial sector is essential for Pakistan's sustainable development," said ADB Investment Specialist Tina Rohner.
"ADB's partnership with Kashf Foundation will help address this issue and provide much-needed financial products for MSMEs led by women, which have the potential to contribute significantly to the country's growth and development." Access to finance is very limited in Pakistan, with only 21.3% of adults and 7% of women over the age of 15 having a bank account in fiscal year 2017.
This situation is particularly acute for MSMEs and individual borrowers, especially women-run microenterprises, as these entities receive only about 7% of total bank credit to the private sector despite contributing around 40% to gross domestic product. MSMEs account for about 98% of all enterprises in Pakistan, employing more than 80% of the nonagricultural labor force.
ADB's assistance comprises an A loan (to be funded by ADB) of up to $15 million and a B loan of $10 million that will be funded by commercial cofinancers including international impact investors.
The assistance will expand Kashf Foundation's lending operations and market base, giving more women and women-led MSMEs access to much-needed long-term financing to further develop their livelihoods and incomes. Apart from microenterprise lending, the project will support Kashf Foundation's other objectives including narrowing the financing gap in the private education sector and improving the quality of education at schools it supports.
The successful syndication of this transaction has allowed ADB to mobilize valuable investment from international impact investors into Pakistan's microfinance sector.
Kashf Foundation, established in 1996 as a microfinance service provider, aims to alleviate poverty in Pakistan and empower women by providing quality and cost-effective microfinance services to low-income households. As of June 2018, Kashf Foundation served 412,983 clients with a gross loan portfolio of $85 million through its distribution networks composed of 291 branches across 50 districts in Pakistan.
ADB is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty. In 2018, it made commitments of new loans and grants amounting to $21.6 billion. Established in 1966, it is owned by 68 members�49 from the region.
Related Topics
Recent Stories
'Charter of economy is the need of the hour': Asif
14 bodies found in Haiti capital suburb amid gang violence
Punjab Chief Minister Maryam Nawaz Sharif announces metro bus projects in three ..
PM, UAE ambassador discuss ties
FM, US ambassador agree to enhance ties
Bear injures five in latest Slovak attack
Families of two WASA workers to be compensated properly: Minister
Jam Kamal expresses concern over delay in work of Bela, Jhao roads
FM desires to strengthen Pak-China ties
Michelin unveils 62 newly starred French restaurants
US hopes Haiti transitional council ready 'as soon as' Monday
Excise dept introduces mobile vehicle registration service
More Stories From Business
-
Current economic challenges can be tackled: Pasha
10 hours ago -
SECP issues advertisements, call centre management guidelines for digital lenders
10 hours ago -
Wall Street stocks lifted by tech rebound before key rate decisions
10 hours ago -
Stock markets rise before key rate decisions
12 hours ago -
SBP keeps policy rate at 22 per cent with emphasis on continued fiscal consolidation
13 hours ago -
Wall Street stocks rise before key rate decisions
13 hours ago
-
Commerce Minister engages with sugar mills, ethanol manufacturers to overcome challenges
13 hours ago -
KATI for prioritizing industrial zones in development budget
15 hours ago -
China's employment situation generally stable in Jan-Feb
15 hours ago -
Gold rates decline by Rs.600 to Rs.226,900 per tola
16 hours ago -
PSX gains 74 points
16 hours ago -
SBP decides to maintain policy rate at 22 percent
16 hours ago