SBP, ADB kick off $500m loans program to fuel women-led businesses

July 07, 2025 (MLN): The Central Bank, in partnership with the Asian Development Bank (ADB), has rolled out a $500 million program aimed at expanding credit access for women entrepreneurs, as the country looks to narrow its gender financing gap and drive inclusive growth.

The State Bank of Pakistan (SBP) formally launched the Women Entrepreneur Finance Code (We Finance Code) at a ceremony in Karachi on Monday.

The event was attended by SBP Governor Jameel Ahmad, Deputy Governor Saleemullah, ADB officials, and executives from leading local banks.

The program, which designates the SBP as the National Code Champion, has already secured the participation of 20 banks.

It targets disbursing loans to 100,000 women-led businesses and will also engage financial institutions, academia, and the private sector to broaden outreach.

“Only 22% of women participate in Pakistan’s labor force, constrained by limited mobility, financing hurdles, and scant digital banking use,” Ahmad said. “Through this initiative, we aim to change that narrative.”

Deputy Governor Saleemullah noted that while Pakistan’s financial inclusion has climbed from 16% to 67% over two decades, women remain largely underserved.

ADB’s Senior Finance Director Christine described Pakistan’s sub-one-third female financial inclusion rate as a “missed opportunity” for the banking sector.

She confirmed that the We Finance Code will make $500 million in credit lines available to fuel women’s economic participation.

Speaking at the event, Governor Jameel Ahmad reaffirmed SBP’s commitment to structural reforms and emphasized the transition from hard-earned macroeconomic stability toward a medium-term economic transformation.

He noted that the country’s current policy mix including prudent monetary policy, improved debt dynamics, and a fundamentals-aligned exchange rate is helping to build fiscal and external buffers necessary for sustainable growth.

He added that headline inflation had declined to 4.5% in FY25, the lowest in nine years, while foreign exchange reserves had risen significantly now nearly five times higher than the levels in early 2023.

The current account remains in check, driven by strong remittances and resilient exports, despite rising imports tied to the economic recovery.

Fiscal policy has complemented these efforts, with Pakistan achieving a second consecutive primary surplus in FY25.

Governor Ahmad stressed that “economic growth holds little meaning unless it is both sustainable and inclusive,” highlighting that supporting women-led micro, small, and medium enterprises (WMSMEs) aligns with SBP’s vision of fostering a stable, inclusive financial ecosystem.

He praised ADB’s role in supporting SBP during the adoption and implementation of the Code in Pakistan.

Saleemullah highlighted SBP’s broader efforts through the National Financial Inclusion Strategy (NFIS) and the Banking on Equality (BOE) policy, which seek to embed gender sensitivity into banking policies, products, and delivery mechanisms.

The launch also featured two panel discussions with stakeholders from the financial sector, government, civil society, and the entrepreneurial community, focusing on challenges, success stories, and strategic collaborations to advance women’s entrepreneurship in Pakistan.

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