KARACHI: HBL Microfinance Bank (HBL MfB) has signed a US$ 80 million Risk Sharing Agreement (RSA or the facility) with the International Finance Corporation (IFC), a member of the World Bank Group.
This facility, which is supported by the Private Sector Window of the Global Agriculture and Food Security Program (GAFSP), will allow HBL MfB to share 50% of the risk on its microfinance loan portfolio of up to US$ 80 million (in PKR equivalent) with IFC, on an unfunded basis.
The collaboration between HBL MfB and IFC will significantly enhance access to finance for smallholder farmers and microenterprises across the country, with a strong focus on women entrepreneurs. The signing of the agreement took place in Karachi in the presence of HBL MfB’s and IFC’s senior leadership including Maya Inayat Ismail, Chairperson of HBL MfB; Amir Khan, President and CEO of HBL MfB; and Makhtar Diop, Managing Director of IFC.
As the pioneer and leader of microfinance in Pakistan, HBL Microfinance Bank has continuously led the industry in transforming financial inclusion. This RSA is another milestone, reinforcing the Bank’s legacy of innovation and leadership in addressing the evolving financial needs of underserved communities. By being the first microfinance bank to establish an agreement on such a scale, HBL MfB is not only pushing boundaries but also redefining industry standards, ensuring that microfinance remains a catalyst for empowerment and economic growth.
This agreement also underscores the Bank’s resilience in navigating the challenges of the microfinance sector. Amidst an evolving economic landscape, HBL MfB remains committed to developing forward-thinking solutions that enhance financial accessibility while mitigating risks. The RSA exemplifies this approach — leveraging strategic partnerships to strengthen financial resilience, expand lending capabilities, and maintain sustainable growth.
Amir Khan, President & CEO, HBL Microfinance Bank, while sharing his views on the RSA, said, “This partnership with IFC is a testament to our commitment to financial inclusion. The facility serves as a replicable model for strategic partnerships that mitigate market challenges while driving sustainable development. By pioneering this Risk Sharing Facility in the microfinance sector, we are ensuring that underserved segments of society — especially small business owners and farmers, particularly women, have access to the capital they need to thrive. We are thankful to IFC for their trust in us and look forward to the growth and progress it will bring for underserved Pakistanis”.
Momina Aijazuddin, Regional Head of Financial Institutions Group (FIG) at IFC, said: “Boosting access to finance, especially for smallholder farmers, small businesses, and women, can be a game-changer in Pakistan. With this in mind, IFC is excited to support this pioneering risk-sharing facility which aims to de-risk HBL MfB’s on-lending activity to its microfinance clients and support critical growth opportunities in agriculture, entrepreneurship, and women’s empowerment.”
This agreement will accelerate financial inclusion, and further HBL Microfinance Bank’s mission of creating a more inclusive and resilient financial ecosystem in Pakistan.
