Business

ADB approves over $155m loan for Pakistan to support women’s financial access

Published

1 year ago

Farwa

New program to help transform financing ecosystem: ADB
$100m loan supports legal and regulatory reforms.
Female labour force participation in Pakistan stands at 23%.

The Asian Development Bank (ADB) has approved $155.5 million in financing for Pakistan to support policy reforms aimed at enhancing women’s access to finance and providing credit to women-led micro, small, and medium-sized enterprises.

The development comes days after the ADB approved $658.8 million in financing to support Pakistan’s sustainable growth and help it recover from last year’s cost-of-living crisis.

In a statement on Monday, the Manila-based lender said the latest financing comprises a $100 million policy-based loan that supports legal and regulatory reforms that will help women to better access finance; a $50 million financial intermediation loan that will enable participating financial institutions to lend to women entrepreneurs; and a $5.5 million grant that will finance related activities.

“Inclusive, resilient and sustainable development cannot be achieved if women do not have equal economic opportunities and benefits,” said ADB Director General for Central and West Asia Yevgeniy Zhukov.

“ADB’s new program will help transform Pakistan’s current financing ecosystem to help women to access much-needed finance and empower them to boost their livelihoods while contributing significantly to the economy.”

In the statement, the ADB said female labour force participation in Pakistan currently stands at about 23% and the country also has among the lowest rates of women’s entrepreneurship in the world at 4% of female working age adults.

While Pakistan’s financial inclusion has been improving, women are increasingly left behind with a large gender finance gap which currently stands at 34%, it added.

“There are many women entrepreneurs in Pakistan, but they remain unrecognised, being small and informal in nature and lacking the incentives to register their businesses formally or to grow,” said ADB Senior Financial Sector Economist Andrew McCartney.

“Policies must recognise the importance of women entrepreneurship and create an enabling environment that increases women’s participation in the formal economy and gives them more opportunities to grow their businesses.”

The policy-based loan supports reforms that incorporate women’s needs into national policies, such as the State Bank of Pakistan’s Banking on Equality Policy that, among a range of measures, requires banks to establish departments dedicated to providing services to women.

It supports measures enabling women’s access to credit and credit alternatives through digital channels, providing financial training and advisory services to women, and improving the working conditions of women within the finance sector.

The financial intermediation loan, meanwhile, is expected to benefit around two million women entrepreneurs, including about 510,000 who previously had no access to finance, through lending via participating financial institutions.

The grant from the Asian Development Fund (ADF) will finance activities such as the development of financial literacy programs and a digital platform that links women to financial services.

Business

With its second-largest surge ever, PSX approaches 114,000 points.

Published

1 day ago

Farwa

Driven by renewed activity from both private and government financial institutions, the Pakistan Stock Exchange (PSX) saw its second-largest rally in history on Monday.

The market regained many important levels in a single trading session as it rose with previously unheard-of momentum.

Intraday trading saw a top increase of 4,676 points, and the PSX’s benchmark KSE-100 Index gained 4,411 points to settle at 113,924 points. This impressive rebound demonstrated significant investor confidence by reestablishing the 100,000, 111,000, 112,000, and 113,000-point levels.

The market also saw the 114,000-point limit reestablished during the trading session.

The positive tendency was reflected when the market’s heavyweight shares touched its upper circuits. Among the most busiest trading sessions in recent memory, an astounding 85.78 billion shares worth a total of Rs55 billion were exchanged.

Experts credited the spike to heightened institutional investor activity and hope for macroeconomic recovery. Considered a major market recovery, the rally demonstrated the market’s tenacity and development potential.

Business

In interbank trade, the Pakistani rupee beats the US dollar.

Published

1 week ago

Farwa

In the international exchange market, the US dollar has continued to weaken in relation to the Pakistani rupee.

The dollar fell to Rs278.10 from Rs278.17 at the beginning of interbank trading, according to currency dealers, a seven paisa loss.

In the meantime, there was a lot of turbulence in the stock market, but it recovered and moved into the positive zone. The KSE-100 index recovered momentum and reached 116,000 points after soaring 1,300 points.

Both currency and stock market swings, according to analysts, are a reflection of ongoing market adjustments and economic uncertainty.

Business

Phase II of CPEC: China-Pakistan Partnership Enters a New Era

Published

1 week ago

Farwa

The cornerstone of economic cooperation between the two brothers and all-weather friends is still the China-Pakistan Economic Corridor, the initiative’s flagship project.

In contrast to reports of a slowdown, recent events indicate a renewed vigour and strategic emphasis on pushing the second phase of CPEC, known as CPEC Phase-2, according to the Ministry of Planning, Development, and Special Initiatives.

According to the statement, this crucial stage seeks to reshape the foundation of bilateral ties via increased cooperation, cutting-edge technology transfer, and revolutionary socioeconomic initiatives.

Planning Minister Ahsan Iqbal is leading Pakistan’s participation in a number of high-profile gatherings in China, such as the 3rd Forum on China-Indian Ocean Region Development Cooperation in Kunming and the High-Level Seminar on CPEC-2 in Beijing.

His involvement demonstrates Pakistan’s commitment to reviving CPEC, resolving outstanding concerns, and developing a strong phase-2 roadmap that considers both countries’ long-term prosperity.

At the core of these interactions is China’s steadfast determination to turn CPEC into a strategic alliance that promotes development, progress, and connectivity.

Instead of being marginalised, CPEC is developing into a multifaceted framework with five main thematic corridors: the Opening-Up/Regional Connectivity Corridor, the Innovation Corridor, the Green Corridor, the Growth Corridor, and the Livelihood-Enhancing Corridor.

With the help of projects like these, the two countries will fortify their partnership, and CPEC phase-2 will become a model of global economic integration and collaboration that benefits not just China and Pakistan but the entire region.