Islamabad, March 19, 2025: The World Bank’s Board of Directors has approved $102 million in financing for Pakistan’s Resilient and Accessible Microfinance (RAM) Project, aimed at expanding access to microcredit and enhancing the resilience of the country’s microfinance sector, particularly in the face of climate-related challenges.
The funding will provide financial support to low-income households, especially those traditionally excluded from formal banking services. According to the World Bank, the initiative is expected to benefit nearly 1.9 million people, fostering financial inclusion and economic stability among vulnerable communities.
The RAM Project will equip microfinance institutions with the necessary resources to sustain their operations during climate-induced financial pressures. A key aspect of the program is the provision of “recovery loans” to individuals and small businesses, enabling them to regain financial stability after economic disruptions.
Drawing from lessons learned during the 2022 floods, the project will prioritize women, small farmers, and rural families—groups most susceptible to climate shocks. “It will enhance economic empowerment and resilience for those at the bottom of the economic pyramid,” said Namoos Zaheer, the project’s Task Team Leader.
The Ministry of Finance, in collaboration with the State Bank of Pakistan, will oversee the implementation of the project. This initiative marks the beginning of a broader effort to strengthen Pakistan’s microfinance sector in partnership with other international financial institutions.
Key components of the RAM Project include establishment of a Climate Risk Fund to safeguard microfinance institutions against climate-related financial risks, integration of agrotechnology solutions to support small farmers, capacity-building programs for microfinance institutions and development of risk management frameworks to enhance financial sector resilience.
The project is further supported by a $23 million grant from the Global Shield Financing Facility (GSFF), a multi-donor trust fund hosted by the World Bank Group. The GSFF is backed by the governments of Canada, Germany, Japan, Luxembourg, and the United Kingdom.
