The IFC, a World Bank Group member, and HBL Microfinance Bank (HBL MfB) inked a landmark $80 million Risk Sharing Agreement (RSA). The alliance aims to increase microfinance access for marginalised Pakistani women entrepreneurs, smallholder farmers, and microenterprises.
This Global Agriculture and Food Security Program-supported facility lets HBL MfB share 50% of its microfinance loan risk with IFC. The project promotes financing capacity and economic growth in agriculture and entrepreneurship.
“This agreement reaffirms our commitment to financial inclusion,” stated HBL MfB CEO Amir Khan. He noted that the agreement shows the bank’s commitment to providing small business owners with capital.
The project might transform financing access for women and small-scale farmers, according to IFC officials. Despite economic hardships, Pakistan’s microfinance sector is developing, with institutions like HBL MfB reaching low-income communities.
This alliance shows how strategic collaborations may improve financial resilience, sustainable development, and diversity, addressing market concerns and enhancing communities nationwide.
