Pakistan: Micro, Small, and Medium-Sized Enterprises Financial Access, Inclusivity, and Resilience Project

Sovereign Project | 54424-001

The Government of Pakistan (GOP) has requested a loan of $125 million from the Asian Development Bank (ADB) concessional ordinary capital resources to support measures that will enhance access to finance for micro, small, and medium enterprises (MSMEs). The project will improve ability of MSMEs to access credit, through strengthening financial institutions risk taking capacity, supporting targeted Government interventions, providing liquidity and enhancing FI risk management, credit assessment, and operational capabilities to efficiently disburse credit to priority sectors (project outcome). The project will build Pakistans economic resilience and help MSMEs become a catalyst in growing Pakistans economy and supporting employment (project impact).

Project Details

Project Name Micro, Small, and Medium-Sized Enterprises Financial Access, Inclusivity, and Resilience Project
Project Number 54424-001
Country Pakistan
Project Status Proposed
Project Type / Modality of Assistance Loan
Source of Funding / Amount
Loan: Micro, Small and Medium-sized Enterprises Financial Access, Inclusivity, and Resilience
Ordinary capital resources US$ 125.00 million
Strategic Agendas Inclusive economic growth
Drivers of Change Gender Equity and Mainstreaming
Governance and capacity development
Knowledge solutions
Partnerships
Private sector development
Sector / Subsector

Finance / Inclusive finance

Gender Equity and Mainstreaming Gender equity
Description

The Government of Pakistan (GOP) has requested a loan of $125 million from the Asian Development Bank (ADB) concessional ordinary capital resources to support measures that will enhance access to finance for micro, small, and medium enterprises (MSMEs). The project will improve ability of MSMEs to access credit, through strengthening financial institutions risk taking capacity, supporting targeted Government interventions, providing liquidity and enhancing FI risk management, credit assessment, and operational capabilities to efficiently disburse credit to priority sectors (project outcome). The project will build Pakistans economic resilience and help MSMEs become a catalyst in growing Pakistans economy and supporting employment (project impact).

The transaction technical assistance (TRTA) will support diagnostic studies, policy dialogue, support for digitization, preparation of the proposed project, and implementation of the auction under Output 2. The program and the TA will be included in the country operations business plan, 2021 2023, for approval in the first quarter of 2021.

Project Rationale and Linkage to Country/Regional Strategy The TRTA will support impactful sectoral capacity building and help ADB and GOP prepare the project. In particular, the TRTA will help with: (i) conducting a study of the need for a credit guarantee agency for MSMEs and support establishment, (ii) strengthening of credit appraisal and risk management systems of MFPs through innovative digital technology, (iii) capacity building of key sector stakeholders, and (iv) project preparation, including identifying, building capacity of, and supporting implementing agency administration of the credit guarantee scheme and auction system
Impact

Financial inclusion to MSEs and households with a special focus on women and rural beneficiaries enhanced.

Economic resilience of MSEs and households, in response to economic decline and COVID-19, restored.

Outcome Increased MSE and household financial services outreach with a special focus on women and rural areas
Outputs

Risk taking capacity of microfinance providers expanded.

Funding of selected microfinance providers enhanced

Government's YES program outreach enhanced .

Geographical Location Nation-wide
Safeguard Categories
Environment FI-C
Involuntary Resettlement FI-C
Indigenous Peoples FI-C
Summary of Environmental and Social Aspects
Environmental Aspects
Involuntary Resettlement
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
During Project Design
During Project Implementation
Responsible ADB Officer Hasan, Fahad
Responsible ADB Department Central and West Asia Department
Responsible ADB Division Pakistan Resident Mission
Executing Agencies
Ministry of Economic Affairs, Economic Affairs Division
Block Q, Pakistan Secretariat
Islamabad, ICT, Pakistan 44000
Timetable
Concept Clearance 14 Jul 2021
Fact Finding 16 Oct 2020 to 16 Oct 2020
MRM 28 Nov 2020
Approval -
Last Review Mission -
Last PDS Update 14 Jul 2021

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.

The Access to Information Policy (AIP) recognizes that transparency and accountability are essential to development effectiveness. It establishes the disclosure requirements for documents and information ADB produces or requires to be produced.

The Accountability Mechanism provides a forum where people adversely affected by ADB-assisted projects can voice and seek solutions to their problems and report alleged noncompliance of ADB's operational policies and procedures.

In preparing any country program or strategy, financing any project, or by making any designation of, or reference to, a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.

None currently available.


Safeguard Documents See also: Safeguards
Safeguard documents provided at the time of project/facility approval may also be found in the list of linked documents provided with the Report and Recommendation of the President.

None currently available.


Evaluation Documents See also: Independent Evaluation

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Related Publications

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The Access to Information Policy (AIP) establishes the disclosure requirements for documents and information ADB produces or requires to be produced in its operations to facilitate stakeholder participation in ADB's decision-making. For more information, refer to the Safeguard Policy Statement, Operations Manual F1, and Operations Manual L3.

Requests for information may also be directed to the InfoUnit.

Tenders

No tenders for this project were found.


Contracts Awarded

No contracts awarded for this project were found


Procurement Plan

None currently available.