The Asian Development Bank (ADB) has approved $155.5 million in financing for Pakistan to support policy reforms enhancing women’s access to finance and provide credit to women-led micro, small, and medium-sized enterprises. The funding comprises a $100 million policy-based loan supporting legal and regulatory reforms to help women better access finance, a $50 million financial intermediation loan enabling participating financial institutions to lend to women entrepreneurs, and a $5.5 million grant to 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.

According to the ADB press statement received here Monday, female labour force participation in Pakistan currently stands at about 23%. The country also has among the lowest rates of women’s entrepreneurship globally at 4% of female working-age adults. While Pakistan’s financial inclusion has been improving, women are increasingly left behind with a significant gender finance gap, which currently stands at 34%.

ADB Senior Financial Sector Economist Andrew McCartney said, “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.”