PMIC, BII partner to unlock up to USD30m of additional lending

Business Recorder reported that Pakistan Microfinance Investment Company (PMIC) has teamed up with British International Investment (BII), the UK development finance institution, to open the way for up to USD 30 million in extra loans. BII is backing the deal with a USD 15 million facility that shares lending risk with PMIC. The arrangement is aimed at widening financial inclusion, with a particular focus on women.

The State Bank and the World Bank's Global Findex Database suggest that much of Pakistan's population is still left out of formal banking. Microfinance currently reaches an estimated 13.5 million clients, while the potential market is put at 40.9 million, and the shortfall is greatest among women, in rural areas and within small enterprises. Under the deal, PMIC gains room to lift credit limits for partner lenders, and the investment qualifies for the 2X Challenge, a global initiative BII helped found in 2018 to back women's economic growth.

Beyond the funding, BII will offer technical support in three priority fields: climate risk assessment, embedding such work in investment processes, and creating fresh financial products. Yasir Ashfaq, who heads PMIC, said the tie-up gives the firm more room to direct funds to places where they can make the largest difference. Officials at the event included British High Commissioner Jane Marriott, senior PMIC and BII representatives, and figures from Pakistan's financial and development sectors.