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 Name
Women Inclusive Finance Sector Development Program (Subprogram 1)
Project Number
54424-001
Country / Economy
  • Pakistan
Project Status
Active
Project Type / Modality of Assistance
  • Grant
  • Loan
Source of Funding / Amount
Grant 0933-PAK: Women Inclusive Finance Sector Development Program (Sub-Program 1)
Source Amount
Asian Development Fund US$ 5.50 million
Loan 4427-PAK: Women Inclusive Finance Sector Development Program (Sub-Program 1)
Source Amount
Ordinary capital resources US$ 100.00 million
Loan 4428-PAK: Women Inclusive Finance Sector Development Program (Standby Guarantee Facility)
Source Amount
Concessional ordinary capital resources lending US$ 50.00 million
Operational Priorities
  • OP1: Addressing remaining poverty and reducing inequalities
  • OP2: Accelerating progress in gender equality
  • OP3: Tackling climate change, building climate and disaster resilience, and enhancing environmental sustainability
  • OP6: Strengthening governance and institutional capacity
Sector / Subsector
  • Finance / Inclusive finance

Gender
Gender equity theme
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.

Project Outcome

Description of Outcome

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

Progress Toward Outcome

Implementation Progress

Description of Project Outputs

Women-centered legal and regulatory frameworks established

Gender-responsive credit delivery enhanced

Entrepreneurship capacity of women enhanced

Strong institutional capacity developed

Women-centered legal and regulatory frameworks established

Status of Implementation Progress (Outputs, Activities, and Issues)
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

Contact

Responsible ADB Officer
McCartney, Andrew C.
Responsible ADB Department
Sectors Group
Responsible ADB Division
Finance Sector Office (SG-FIN)
Executing Agencies
Ministry of Finance

Timetable

Concept Clearance
15 Sep 2022
Fact Finding
26 Sep 2022 to 30 Sep 2022
MRM
24 Aug 2023
Approval
11 Dec 2023
Last Review Mission
-
Last PDS Update
11 Dec 2023

Funding

Grant 0933-PAK

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
11 Dec 2023 15 Dec 2023 21 Dec 2023 30 Jun 2029 - -
Financing Plan
  Total (Amount in US$ million)
Project Cost 5.50
ADB 5.50
Counterpart 0.00
Cofinancing 0.00
Grant Utilization
  Date ADB Others Net Percentage
Cumulative Contract Awards 06 Jun 2024 0.00 0.00 0%
Cumulative Disbursements 06 Jun 2024 0.00 0.00 0%

Loan 4427-PAK

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
11 Dec 2023 15 Dec 2023 21 Dec 2023 30 Jun 2024 - -
Financing Plan
  Total (Amount in US$ million)
Project Cost 100.00
ADB 100.00
Counterpart 0.00
Cofinancing 0.00
Loan Utilization
  Date ADB Others Net Percentage
Cumulative Contract Awards 06 Jun 2024 0.00 0.00 0%
Cumulative Disbursements 06 Jun 2024 100.00 0.00 100%

Loan 4428-PAK

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
11 Dec 2023 15 Dec 2023 21 Dec 2023 30 Jun 2029 - -
Financing Plan
  Total (Amount in US$ million)
Project Cost 50.00
ADB 50.00
Counterpart 0.00
Cofinancing 0.00
Loan Utilization
  Date ADB Others Net Percentage
Cumulative Contract Awards 06 Jun 2024 0.00 0.00 0%
Cumulative Disbursements 06 Jun 2024 0.00 0.00 0%

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.

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Related Publications

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  • 11 Dec 2023 | News Release

    ADB to Help Boost Pakistan Women’s Access to Finance

    ADB has approved $155.5 million in financing for Pakistan that will support policy reforms enhancing women’s access to finance and provide credit to women-led micro, small, and medium-sized enterprises.

Tenders

No tenders for this project were found.

Contracts Awarded

No contracts awarded for this project were found

Procurement Plan

None currently available.