Pakistan: Micro, Small, and Medium-Sized Enterprises Financial Access, Inclusivity, and Resilience Project
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
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Project Officer
Hasan, Fahad
Central and West Asia Department
Request for information -
Country
Pakistan -
Sector
- Finance
Related Projects
| Project Name | Micro, Small, and Medium-Sized Enterprises Financial Access, Inclusivity, and Resilience Project | ||||
| Project Number | 54424-001 | ||||
| Country | Pakistan |
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| Project Status | Proposed | ||||
| Project Type / Modality of Assistance | Loan |
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| Source of Funding / Amount |
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| Strategic Agendas | Inclusive economic growth |
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| Drivers of Change | Gender Equity and Mainstreaming Governance and capacity development Knowledge solutions Partnerships Private sector development |
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| Sector / Subsector | Finance / Inclusive finance |
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| 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. |
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| 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. |
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| 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 . |
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| Geographical Location | Nation-wide | ||||
| Safeguard Categories | |
|---|---|
| Environment | FI-C |
| Involuntary Resettlement | FI-C |
| Indigenous Peoples | FI-C |
| Summary of Environmental and Social Aspects | |
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| 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 |
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Tenders
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Procurement Plan
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