Islamabad, Feb 13: HBL Microfinance Bank (HBL MfB) has signed an $80 million Risk Sharing Agreement (RSA) with the International Finance Corporation (IFC), a member of the World Bank Group. This facility, supported by the Private Sector Window of the Global Agriculture and Food Security Program (GAFSP), will allow HBL MfB to share 50% of the risk on its microfinance loan portfolio of up to $80 million (in PKR equivalent) with IFC, on an unfunded basis.
The partnership aims to enhance financial access for smallholder farmers and microenterprises in Pakistan, with a particular focus on women entrepreneurs. This agreement strengthens HBL MfB’s leadership in the microfinance sector, allowing the bank to push boundaries and redefine industry standards. The facility also ensures that microfinance remains a key driver of empowerment and economic growth.
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Amir Khan, President & CEO of HBL MfB, expressed that the agreement exemplifies the bank’s commitment to financial inclusion and sustainable development. It also highlights the bank’s resilience in navigating the evolving economic landscape, by leveraging strategic partnerships to address market challenges while fostering financial accessibility.
Momina Aijazuddin, Regional Head of Financial Institutions Group (FIG) at IFC, emphasized the importance of boosting access to finance, especially for smallholder farmers and women, calling the RSA a gamechanger for Pakistan. This collaboration will accelerate financial inclusion, empowering underserved segments, particularly in agriculture and entrepreneurship, to thrive.
