PMIC, BII Partner to Unlock Up to $30m in Additional Lending

Pakistan Microfinance Investment Company (PMIC) and British International Investment (BII) have entered into a partnership aimed at unlocking up to $30 million in additional lending through PMIC’s portfolio.

 

The initiative is backed by a $15 million risk-sharing facility from BII, which will allow PMIC to increase credit limits for partner financial institutions and expand financing to underserved segments of the economy.

 

The partnership will focus particularly on women, rural households, small businesses and entrepreneurs who have limited access to formal financial services.

 

Pakistan’s microfinance sector currently serves around 13.5 million clients, compared with an estimated potential market of 40.9 million, highlighting a significant financing gap.

 

Under the agreement, BII will share risks associated with PMIC’s lending portfolio, enabling partner financial institutions to expand their capacity and reach more underserved borrowers. The initiative is expected to benefit a large share of women borrowers and qualifies for the global 2X Challenge, which promotes women’s economic empowerment.

 

The additional financing could help women entrepreneurs establish and expand businesses, create employment and strengthen household incomes, while also supporting small farmers and rural enterprises.

 

BII will also provide technical assistance focused on climate-risk assessment, integrating climate considerations into investment decisions and developing new financial products.

 

PMIC CEO Yasir Ashfaq said the partnership would strengthen the company’s ability to mobilise capital and expand financing to women, rural communities and small businesses across Pakistan.