Qudsia Bano

In a landmark development for women’s economic empowerment, the government and the Asian Development Bank (ADB) have signed a $350 million loan agreement under the Women Inclusive Finance Sector Development Programme (Subprogramme-II), marking a significant step towards expanding access to finance for women, fostering entrepreneurship, and promoting inclusive workplace practices across the financial sector.

Subprogramme-II builds upon earlier reforms introduced under Subprogramme-I, and targets four key areas: establishing a policy and regulatory environment conducive to women’s financial inclusion, increasing the supply of credit for women, strengthening their entrepreneurial capacity, and fostering equitable workspaces within financial institutions.

Commenting on the agreement, Dr Hina Saeed, Senior Economist at the Pakistan Institute of Development Economics (PIDE), stated, "This financing is more than a loan; it’s a strategic investment in Pakistan’s untapped potential. By enabling women to access capital, we are addressing one of the biggest barriers to inclusive growth. The spillover effects on household welfare, education, and local economies can be profound."

Echoing this view, Sadaf Abbas, Head of Inclusive Finance at Karandaaz Pakistan, noted, "The ADB’s support will strengthen Pakistan’s financial infrastructure to serve women better. It is critical that the financial sector moves beyond traditional models and actively builds services that reflect the needs and constraints of women entrepreneurs, particularly in underserved regions."

The financing package includes a $300 million policy-based loan and a $50 million financial intermediary loan, which together aim to enhance Pakistan’s capacity for inclusive and sustainable development. The initiative supports the government's broader agenda to integrate gender equality into economic policymaking and development planning.

With coordinated efforts between the government, development partners, and the financial sector, the programme is poised to make a tangible impact by empowering women to participate more fully in the country’s economic life. As implementation begins, experts remain optimistic that this milestone agreement could set the tone for long-term, inclusive economic transformation in Pakistan.

Credit: INP-WealthPk