Preparing the Micro, Small, and Medium-Sized Enterprises Financial Access, Inclusivity, and Resilience Project (ADB-54424-002)

Regions
  • South Asia
Geographic location where the impacts of the investment may be experienced.
Countries
  • Pakistan
Geographic location where the impacts of the investment may be experienced.
Financial Institutions
  • Asian Development Bank (ADB)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Approved
Stage of the project cycle. Stages vary by development bank and can include: pending, approval, implementation, and closed or completed.
Bank Risk Rating
U
Environmental and social categorization assessed by the development bank as a measure of the planned project’s environmental and social impacts. A higher risk rating may require more due diligence to limit or avoid harm to people and the environment. For example, "A" or "B" are risk categories where "A" represents the highest amount of risk. Results will include projects that specifically recorded a rating, all other projects are marked ‘U’ for "Undisclosed."
Voting Date
Aug 10, 2021
Date when project documentation and funding is reviewed by the Board for consideration and approval. Some development banks will state a "board date" or "decision date." When funding approval is obtained, the legal documents are accepted and signed, the implementation phase begins.
Sectors
  • Finance
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Advisory Services
The categories of the bank investment: loan, grant, guarantee, technical assistance, advisory services, equity and fund.
Investment Amount (USD)
$ 0.50 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Grant Amount (USD)
$ 0.50 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Project Cost (USD)
$ 1.00 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Bank Documents
Other Related Projects
Primary Source

Original disclosure @ ADB website

Updated in EWS May 11, 2022

Disclosed by Bank Jul 14, 2021

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Project Description
If provided by the financial institution, the Early Warning System Team writes a short summary describing the purported development objective of the project and project components. Review the complete project documentation for a detailed description.

According to the ADB project page, The Technical Assistance (TA) is attached to the concept paper for a proposed loan of $125 million supporting financial inclusion of Micro, Small, and Medium-Sized Enterprises (MSME) and income-generating households in Pakistan. The objective of the proposed project is to restore economic resilience of the household and MSME borrowers in response to the ongoing COVID-1 crisis and help kick-start lending.

PROJECT RATIONALE AND LINKAGE TO COUNTRY/REGIONAL STRATEGY

In June 2020 Pakistan's microfinance industry serviced approximately 6.9 million borrowers with outstanding loans of approximately $1.9 billion (PRs 299 billion). Since 2015 the micro and small enterprise (MSE) loan book has grown at a compound average growth rate (CAGR) of 35% while client outreach increased at a CAGR of 20%. However, due to the economic decline in 2019 and COVID-19, client outreach and loan disbursements to households dropped sharply and further decline is anticipated until end 2021. Women borrowers were particularly hard hit declining 9% from June 2019-June 2020. 

 

Investment Description
Here you can find a list of individual development financial institutions that finance the project.

The TA is estimated to cost $1,000,000, of which (i) $500,000 will be financed on a grant basis by ADB’s Technical Assistance Special Fund (TASF-other sources) and (ii) $500,000 will be financed on grant basis by the Republic of Korea e-Asia and Knowledge Partnership Fund and administered by ADB.

Technical Assistance Special Fund US$ 500,000.00
Republic of Korea e-Asia and Knowledge Partnership Fund US$ 500,000.00

Contact Information
This section aims to support the local communities and local CSO to get to know which stakeholders are involved in a project with their roles and responsibilities. If available, there may be a complaint office for the respective bank which operates independently to receive and determine violations in policy and practice. Independent Accountability Mechanisms receive and respond to complaints. Most Independent Accountability Mechanisms offer two functions for addressing complaints: dispute resolution and compliance review.
Responsible ADB Officer McCartney, Andrew C.
Responsible ADB Department Central and West Asia Department
Responsible ADB Division Pakistan Resident Mission
Executing Agencies
Ministry of Economic Affairs, Economic Affairs Division
Block Q, Pakistan Secretariat
Islamabad, ICT, Pakistan 44000
Pakistan Resident Mission
Tariq Anwar
Pakistan

ACCESS TO INFORMATION

You can submit an information request for project information at: https://www.adb.org/forms/request-information-form

ADB has a two-stage appeals process for requesters who believe that ADB has denied their request for information in violation of its Access to Information Policy. You can learn more about filing an appeal at: https://www.adb.org/site/disclosure/appeals

ACCOUNTABILITY MECHANISM OF ADB

The Accountability Mechanism is an independent complaint mechanism and fact-finding body for people who believe they are likely to be, or have been, adversely affected by an Asian Development Bank-financed project. If you submit a complaint to the Accountability Mechanism, they may investigate to assess whether the Asian Development Bank is following its own policies and procedures for preventing harm to people or the environment. You can learn more about the Accountability Mechanism and how to file a complaint at: http://www.adb.org/site/accountability-mechanism/main.

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How it works