World Bank Approves Loan Of $102m For Pakistan

Abdullah Hussain (@Abdulla99267510) Published March 19, 2025 | 12:34 PM

World Bank stated that loan will be provided to poor and low-income households

ISLAMABAD: (UrduPoint/UrduPoint / Pakistan Point News-March 19^th, 2025) The World Bank on Wednesday approved a loan of $102 million for Pakistan for microcredit and microfinance.

The latest reports said that the loan amount would benefit 1.89 million people.

The World Bank stated that the loan would be provided to poor and low-income households. The World Bank said that the loan would be disbursed through the Ministry of Finance and the State Bank of Pakistan (SBP). It would ensure that microfinance institutions (MFIs) could continue providing financial services, even during climate-induced economic disruptions.

The project is likely to benefit nearly 1.89 million people including over 1 million women and 350,000 youth, by increasing their access to credit and financial stability.

World Bank Country Director for Pakistan Najy Benhassine stressed upon the importance of the project in supporting livelihoods of vulnerable populations.

He said, “Microfinance is a critical tool for supporting the livelihoods of vulnerable populations in Pakistan. This project will help strengthen the resilience of the microfinance sector, particularly in the face of growing climate risks, ensuring that the sector can continue to provide essential financial services to those who need them most, especially in rural areas,”.

He stated that the project aligned with the World Bank’s commitment to promote financial inclusion and climate resilience in Pakistan under the CPF.