PMIC and British International Investment launch $30 m micro‑finance boost

## Partnership Overview

Pakistan Microfinance Investment Company (PMIC) and British International Investment (BII), the United Kingdom’s development finance institution, have entered into a partnership that will unlock up to US$30 million of additional lending for PMIC’s portfolio. The deal includes a US$15 million risk‑sharing facility from BII, enabling PMIC to raise credit limits for its partner financial institutions. ## Objective and Target Beneficiaries The collaboration aims to deepen financial inclusion in Pakistan, with a particular focus on women borrowers, rural families and small enterprises that remain outside the formal banking system. According to the State Bank of Pakistan and the World Bank’s Global Findex, only about 13.5 million people are currently served by micro‑finance providers, far short of the estimated 40.9 million potential clients. ## Expected Impact Through the risk‑sharing arrangement, PMIC can extend more credit to its partner micro‑finance institutions, helping them reach a larger share of women end‑borrowers and supporting smallholder farmers, rural traders and informal businesses. The increased flow of capital is expected to spur entrepreneurship, job creation and household income growth, thereby contributing to broader economic development. ## Technical Assistance Component In addition to the financing facility, BII will provide technical assistance in three priority areas: climate risk assessment and management, integration of climate considerations into investment processes, and the design of new, Shariah‑compliant financial products. ## Signing Ceremony The agreement was signed in Islamabad in the presence of the British High Commissioner to Pakistan, Jane Marriott, senior officials from PMIC and BII, and representatives from Pakistan’s financial and development sectors. PMIC CEO Yasir Ashfaq highlighted the partnership as a sign of continued international confidence in Pakistan’s micro‑finance ecosystem and a catalyst for mobilising capital to underserved segments. ## Shariah Perspective The initiative aligns with Islamic finance principles by promoting equitable access to credit, supporting productive economic activity, and incorporating climate‑risk mitigation – all of which are consistent with the objectives of socially responsible and Shariah‑compliant investing.