Pakistan Launches First 'Gender Bond' for Flood-Hit Women

In a historic step, Pakistan became the first South Asian country to issue a 'gender bond' to raise Rs2.5 billion ($8.7 million) to fund microloans for around 30,000 women, especially those impacted by the terrible floods of 2022.

The Kashf Foundation, a Pakistani non-profit organization, is spearheading the pioneering effort in partnership with for-profit credit improvement facility InfraZamin Pakistan, which is backed by InfraCo. Asia Investments and Karandaaz Pakistan. The bond issue at the Pakistan Stock Exchange (PSX) is a key step for financial inclusion and women's empowerment in the area.

According to Shahzad Iqbal, CFO at Kashf Foundation, "the idea behind this bond is to give loans to those women who were affected by the floods last year so that they can build resilience and protect themselves in the future."

The Rs2.5 billion generated through the country's stock market from the bond would be used to give loans to women affected by the 2022 floods. The bond's three-year term is only committed to assisting women, giving it the moniker 'gender bond.'

The bond's focus on financial inclusion and restoration efforts was stressed by Maheen Rahman, CEO of InfraZamin Pakistan, who stated, "By creating such a structure, we have effectively targeted women, and as a result, we have met the requirements for this to be a gender bond."

The bond offering follows the Securities and Exchange Commission of Pakistan's (SECP) standards, with Arif Habib Limited serving as financial adviser and arranger. The bond will be listed on the PSX's over-the-counter market, with trading set to begin in the following months.

Dr. Shamshad Akhtar, caretaker Finance Minister, commended the project as a "groundbreaking" instrument for bridging the gender gap and empowering women, underlining its potential to generate positive social change and development inside Pakistan. SECP Chairman Akif Saeed agreed, emphasizing the social impact of microloans on women and their families.