ISLAMABAD: Pakistan Microfinance Investment Company (PMIC) and British International Investment (BII), the UK’s development finance institution, have signed a partnership to unlock up to $30 million in additional lending through PMIC’s portfolio, backed by a $15 million risk-sharing facil-ity from BII, aimed at advancing financial inclusion for women across Pakistan.
A large share of the country’s population remains outside the formal financial system. Pakistan’s microfinance sector currently serves an estimated 13.5 million clients against a potential market of 40.9 million, with the gap concentrated among women, rural households and small businesses.Under the agreement, BII will share risk on PMIC’s lending portfolio, enabling PMIC to raise credit limits for partner financial institutions by up to $30 million and expand their outreach to underserved segments, particularly women. The investment, expected to reach a majority of women end-borrowers, qualifies for the 2X Challenge, a global initiative co-founded by BII in 2018 topromote women’s economic empowerment.
Alongside the facility, BII will provide technical assistance in climate risk management, its integration into investment processes, and the development of new financial products.
The signing ceremony was attended by British High Commissioner to PakistanJ a n e Marriott,along with senior representatives of PMIC and BII.
PMIC Chief Executive Officer Yasir Ashfaq said the partnership reflected continuing trust from international and local institutions and would strengthen PMIC’s ability to deploy capital where it has the greatest impact.
Srini Nagarajan, BII’s Managing Director for Asia,said the deal would help expand financial inclusion and unlock economic opportunities for women and underserved communities across Pakistan.
Ms Marriott said expanding access to finance for women, small businesses and rural communities could help create jobs and strengthen local economies.