ADB Allocates $155.5M to Boost Pak Women's Financial Inclusion

The Asian Development Bank (ADB) has granted $155.5 million on December 13, 2023, in financing for Pakistan, a significant step toward increasing women's economic empowerment. The funds will be used to assist legislative changes that will increase women's access to finance and offer loans to women-led micro, small, and medium-sized businesses.

The funding includes a $100 million policy-based loan that supports legislative and regulatory reforms to improve women's access to finance. A $50 million financial intermediation loan is also set aside to enable participating financial institutions to lend credit to women entrepreneurs, while a $5.5 million grant will fund similar operations.

ADB Director General for Central and West Asia, Yevgeniy Zhukov, underlined the need of equal economic opportunities for women, adding, "Inclusive, resilient, and sustainable development cannot be achieved if women do not have equal economic opportunities and benefits."

Despite progress in financial inclusion, female labour force participation in Pakistan is at 23%, with just 4% of female working-age individuals engaging in entrepreneurship. The funding project aims to close the gender finance gap, which presently stands at 34%, by introducing policies that address women's demands.

The policy-based loan funds improvements in national policies that meet women's needs, such as the development of specific departments inside banks to provide services to women. The financial intermediation loan is estimated to help around two million female entrepreneurs, including 510,000 who previously did not have access to financing.

The Asian Development Fund award will fund initiatives such as the creation of financial literacy programs and a digital platform that connects women to financial services, therefore contributing to a more inclusive and stronger financial ecosystem in Pakistan.