Preparation Micro Small Tender

Project Status ApprovedThe 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. In june 2020 pakistans 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. The proposed project is to restore economic resilience of the household and msme borrowers in response to the ongoing crisis and help kick-start lending. Sector Subsector Finance inclusive finance