Pakistan: Women Inclusive Finance Sector Development Program (Subprogram 1)

Sovereign Project | 54424-001

The proposed Women Inclusive Finance Sector Development Program entails a policy-based loan component to be delivered in 2 subprograms to the Government of Pakistan (GOP) a financial intermediation loan (FIL) and a credit guarantee facility backed by a FIL to enhance women entrepreneurs access to finance and representation and voice in the economy. A central objective of the Government' of Pakistan's economic development strategy is the generation of job opportunities and enhancement of income levels as top priorities. Achieving these objectives will require substantial investments of private and public capital to accelerate economic growth, but also to ensure that future growth is inclusive of women.

Project Details

  • Project Officer
    McCartney, Andrew C.
    Central and West Asia Department
    Request for information
  • Country/Economy
    Pakistan
  • Sector
    • Finance
Project Name Women Inclusive Finance Sector Development Program (Subprogram 1)
Project Number 54424-001
Country / Economy Pakistan
Project Status Proposed
Project Type / Modality of Assistance Grant
Loan
Source of Funding / Amount
Grant: Women Inclusive Finance Sector Development Program (Sub-Program 1)
Asian Development Fund US$ 5.50 million
Loan: Women Inclusive Finance Sector Development Program (Standby Guarantee Facility)
Concessional ordinary capital resources lending US$ 100.00 million
Loan: Women Inclusive Finance Sector Development Program (Sub-Program 1)
Ordinary capital resources US$ 75.00 million
Strategic Agendas Environmentally sustainable growth
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 proposed Women Inclusive Finance Sector Development Program entails a policy-based loan component to be delivered in 2 subprograms to the Government of Pakistan (GOP) a financial intermediation loan (FIL) and a credit guarantee facility backed by a FIL to enhance women entrepreneurs access to finance and representation and voice in the economy. A central objective of the Government' of Pakistan's economic development strategy is the generation of job opportunities and enhancement of income levels as top priorities. Achieving these objectives will require substantial investments of private and public capital to accelerate economic growth, but also to ensure that future growth is inclusive of women.

The program is well anchored in the operational priorities of ADB's Strategy 2030, specifically, gender equality (pillar 2) and the Pakistan Country Partnership strategy (2021-2025) for supporting women participation in the growth of private sector and development of the financial sector to support private sector. The preparation of the proposed SDP benefits from existing TRTA approved in June 2021.

Project Rationale and Linkage to Country/Regional Strategy The program adopts a holistic approach by combining both ADBs timely funding via the FILs, supported and reinforced by appropriate policy reforms designed to address underlying barriers for women inclusive finance. The SDP modality is chosen to maximize ADBs value addition by combining (i) critical regulatory and policy reforms to improve the supply and demand of finance for women, through two policy-based loans (PBLs) in a programmatic approach in 2022-2023, with (ii) two financial intermediary loans (FILs) to fill the funding gap in the identified market segments. Both PBL and FIL components are mutually reinforcing: the FIL helps operationalize the reforms and move the industry onto a more sustainable, inclusive, and scalable footing, whilst the PBL stimulates both the supply and the demand factor to ensure the FIL is effectively utilized for maximum impact.
Impact

Women act as major contributors in transforming the economy into a more inclusive, efficient, innovative, and competitive marketplace.

Outcome

Women's access to finance and representation in the financial sector increased.

Outputs

Women-centered legal and regulatory frameworks established

Gender-responsive credit delivery enhanced

Entrepreneurship capacity of women enhanced

Strong institutional capacity developed

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 McCartney, Andrew C.
Responsible ADB Department Central and West Asia Department
Responsible ADB Division Public Management, Financial Sector and Trade Division, CWRD
Executing Agencies
Ministry of Economic Affairs, Economic Affairs Division
Ministry of Finance
Timetable
Concept Clearance 15 Sep 2022
Fact Finding 26 Sep 2022 to 30 Sep 2022
MRM 22 Feb 2023
Approval -
Last Review Mission -
Last PDS Update 21 Sep 2022

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