Islamabad, Pakistan’s Finance Minister recently met with World Bank Country Director for Pakistan, Mr. Najy Binhassine, to finalize funding for two significant World Bank-funded operations in the country.

According to Press Information Department, the meeting focused on securing additional financing of US$ 250 million for the “Crisis-Resilient Social Protection Program (CRISP)”, implemented by Benazir Income Support Program (BISP). This program is designed to develop a more adaptive social protection system, enhancing crisis resilience among poor and vulnerable households. Additionally, the “Resilient and Accessible Microfinance (RAM) Program” worth US$175 million was discussed, aimed at expanding access to microcredit and bolstering the resilience of the microfinance sector and its clients.

The Finance Minister approved in principle the additional financing for the CRISP program and scheduled another meeting to formalize its aspects, involving the State Bank of Pakistan and the Security and Exchange Commission of Pakistan. The World Bank team outlined the RAM program’s framework, highlighting the microfinance sector’s growth despite external shocks but acknowledging its current challenges, including capital, liquidity, and climate shocks. The proposed program seeks to address these issues, fostering a more resilient and inclusive microfinance sector.

Public debt concerns were also raised in the meeting, with suggestions to support microfinance banks and institutions through local resources rather than increasing foreign loans. The Finance Minister requested further refinement of the program’s background work for accuracy and asked the World Bank team to collaborate with the IFC team on this. She concluded the meeting by expressing gratitude for the World Bank’s ongoing support to Pakistan.