MICROCAPITAL BRIEF: Asian Development Bank (ADB) Loans $25m to Kashf Foundation to Expand Microfinance for Women in Pakistan

The Asian Development Bank (ADB), a Philippines-based multilateral institution, recently approved a loan of USD 25 million to support the operations of Kashf Foundation, a provider of microfinance services in Pakistan. The loan is intended to help expand access to credit for and otherwise boost the economic empowerment of women as well as women-led micro-, small and medium enterprises (MSMEs) in the country. The investment will also support Kashf’s mission to boost families’ access to private education.

Tina Rohner, an investment specialist at ADB, said, “There is a need to improve access to finance in Pakistan, particularly for women in low-income communities as well as women-led enterprises. An inclusive financial sector is essential for Pakistan’s sustainable development. ADB’s partnership with Kashf Foundation will help address this issue and provide much-needed financial products for MSMEs led by women, which have the potential to contribute significantly to the country’s growth and development.”

Kashf, which describes itself as a microfinance and wealth management organization, was established in 1996 to alleviate poverty by providing financial and educational services to low-income households, especially women. These services include training clients to safeguard children against abuse, develop marketable skills, and manage their finances. The organization has also established Kashf School Sarmaya, a holistic credit facility that provides financial access to low-cost private schools and capacity building trainings to teachers and school personnel. As of 2018, Kashf has a network of 291 branches and serves 414,000 clients across 60 districts in Pakistan. Kashf has total assets of PKR 14.4 billion (USD 89.8 million), with a gross loan portfolio of PKR 10.51 billion (USD 65.6 million). The organization does not accept deposits.

Established in 1966, ADB is an international development finance institution headquartered in Manila, Philippines. The institution’s mission is to help its 67 member countries reduce poverty and otherwise improve the quality of life of Asia’s citizens. As of 2018, ADB has total assets of USD 192 billion, with a loan portfolio of USD 86.7 billion.

By Anna Gravois, Research Associate

Sources and Additional Resources

ADB press release
https://www.adb.org/news/adb-kashf-foundation-partner-expand-womens-access-credit-pakistan

ADB homepage
https://www.adb.org

ADB 2018 annual report
https://www.adb.org/multimedia/ar2018/#/

Kashf homepage
http://kashf.org

Kashf 2017-2018 annual report
https://kashf.org/publications-2/

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