KARACHI, August 21, 2026 – The International Finance Corporation (IFC), a member of the World Bank Group, has announced an investment of $10 million in ASA Microfinance Bank (Pakistan) Limited (ASA MFB) in the form of a four-year loan aimed at expanding access to finance for women microfinance borrowers, and supporting private sector growth in Pakistan.
The loan will be used by ASA MFB to enhance its on-lending toward women entrepreneurs and microbusinesses across Pakistan. IFC’s four-year financing will offer liquidity stability to ASA MFB to serve more clients, as the bank continues to expand and strengthen its operations.
IFC’s investment is supported by the International Development Association Private Sector Window (IDA PSW) Blended Finance Facility. It will be processed under IFC’s MSME Finance Platform – Base of the Pyramid Envelope that supports lending by financial institutions to help small businesses in emerging markets.
The investment addresses a critical gap in Pakistan’s financial landscape where access to finance remains low with only 27 percent of Pakistani adults having access to a bank account and a large micro, small, and medium enterprise (MSME) finance gap estimated at approximately $57.8 billion, or 20 percent of gross domestic product.
Approximately 39 percent of MSMEs are considered credit constrained, and the gender gap in access to finance is particularly pronounced: the share of women with access to a formal account is 30.4 percentage points lower than that of men. Pakistan also ranks last among 148 countries in the World Economic Forum’s Global Gender Gap Report 2025, with a female labor force participation rate of 22.6 percent.
Beyond the direct investment, IFC will also provide targeted advisory services to improve the bank’s gender-disaggregated data reporting system and practices so it can better understand and serve the needs of female borrowers over time.
“This partnership is about recognizing and supporting women who are already running businesses,” said Naazer Minhaj, President & CEO of ASA Microfinance Bank (Pakistan) Limited. “It will enable us to extend financing to more women across Pakistan, helping them strengthen their businesses and build on what they have already achieved.”
“In Pakistan, millions of women run businesses and support their families, yet they remain largely shut out of the formal financial system. This investment in ASA Microfinance Bank is about changing that – putting affordable credit directly into the hands of women entrepreneurs and microbusinesses who have historically been seen as too risky to lend to,” said Momina Aijazuddin, Regional Industry Director, Financial Institutions Group, IFC, “We believe this investment will not only help many households but also demonstrate to the broader market that lending to women is not just the right thing to do, it is good business.”
This investment is part of a broader World Bank Group effort to support Pakistan’s financial sector over the next decade, with a particular focus on closing the gap between men and women in access to financial services. It also supports Pakistan’s own national goals of making banking and credit more accessible to all citizens, especially women.
About IFC
IFC – a member of the World Bank Group – is the largest global development institution focused on the private sector in emerging markets. We work in more than 100 countries, using our capital, expertise, and influence to create markets and opportunities in developing countries. In fiscal year 2025, IFC committed a record $71.7 billion to private companies and financial institutions in developing countries, leveraging private sector solutions and mobilizing private capital to create a world free of poverty on a livable planet. For more information, visit www.ifc.org.
About the IDA Private Sector Window
The International Development Association’s Private Sector Window (IDA PSW) was launched in 2017 to catalyze private sector investment in the poorest and most fragile countries. Recognizing the key role of the private sector in creating jobs and promoting economic transformation, the window provides a source of co-investment funding and guarantees to de-risk private investments supported by the World Bank Group’s International Finance Corporation (IFC) and the Multilateral Investment Guarantee Agency (MIGA). The IDA PSW is an option when there is no commercial solution and the Bank Group’s other tools are insufficient. For more information, visit: http://ida.worldbank.org/psw
About ASA Microfinance Bank (Pakistan) Limited
ASA Microfinance Bank Pakistan is a leading microfinance player that has been serving underserved communities across Pakistan since 2008. Following the grant of a microfinance banking license in 2023, the bank has expanded its ability to provide inclusive financial services, with a strong focus on women borrowers, helping them strengthen livelihoods, grow businesses, and enhance economic opportunities.
Through a nationwide network of more than 400 branches and service centers, ASA Pakistan serves over 800,000 clients across both urban and rural markets. The bank is part of ASA International Group plc (LSE: ASAI), a global microfinance organization headquartered in Amsterdam and operating across Asia and Africa. For more information, visit: www.pakistan.asa-international.com