According to the World Bank, the loan will be used for microcredit and microfinance programs, benefiting approximately 1.89 million people. The loan will be provided to low-income households and the underprivileged, with funds distributed through the Ministry of Finance and managed by the central bank.

This aid is part of the new ten-year Country Partnership Framework.

The announcement stated that the project will help enhance financial inclusion, particularly for small businesses and rural areas.

The World Bank’s Country Director highlighted that microfinance is a key tool for providing financial support to the underprivileged. The project is expected to benefit 1.89 million people, including 1 million women. Currently, 54 World Bank-funded projects are ongoing in Pakistan, with the total investment reaching $15.7 billion.