29229-013: Microfinance Sector Development Program

Project Data Sheet (PDS): Details


Description

The Project will support the development of sustainable rural microfinance services through commercial banks and credit unions to finance viable farm and nonfarm economic activities and investments in household improvements, education, and health. About eighty percent of the subloans financed by the Project will be to people living below the poverty line, and approximately 36 percent of the subborrowers will be women. To accomplish this, the Project will provide a revolving line of credit and institutional strengthening for the executing agency, commercial banks, NGOs, credit unions, and subborrowers participating in the Project.

Project Rationale and Linkage to Country/Regional Strategy

Poverty continues to be a major problem in Pakistan, with an estimated 30-40 percent of the population living below the poverty line. Poverty is especially prevalent in rural areas, with an estimated 70 percent of the country's poor living in rural areas. Although many factors contribute to poverty, one of the key factors is the absence of liquidity that is needed to stimulate economic activity and growth. Traditional development projects have addressed this constraint through credit, but savings have long been known to comprise an equally, if not more, important source of funds for the rural poor in developing countries. Using a line of credit to meet existing loan demands, stimulate further investment by existing financial institutions in rural microfinance, and promote savings mobilization in rural areas represents a significant step toward resolving one of the constraints to improved standards of living in rural Pakistan today.

Safeguard Categories

Environment: B
Involuntary Resettlement:
Indigenous Peoples:



Project Data Sheets (PDS) contain summary information on the project or program. Because the PDS is a work in progress, some information may not be included in its initial version but will be added as it becomes available. Information about proposed projects is tentative and indicative.

Project Data Sheets (PDS)

Timetable

Fact-finding
05 Jun 2000 to 23 Jun 2000

Management Review Meeting
27 Jul 2000

Board Approval
13 Dec 2000

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