Pakistan has launched the first-ever South Asian gender bond worth Rs2.5 billion at the country’s stock market on Thursday, taking the lead in financially empowering women through disbursing the fund and beating the leading economies on the front in the region.
While speaking in an online address at the launch ceremony of 'Pakistan and South Asia’s First Gender Bond' at Pakistan Stock Exchange (PSX), Caretaker Finance Minister Dr Shamshad Akhtar said this is a historical and groundbreaking occasion as “the dream comes true.”
She said we are living in an environment of gender-gap societies. The fund will help narrow the gap, as it will help some 30,000 women to benefit financially and upgrade their lifestyles.
The fund will provide economic opportunities to marginalised women, gaining access to education and healthcare facilities among other socio-economic upgradation and expedite the drive for financial inclusion.
The finance minister said this is a wake-up development for all to acknowledge that women's participation is a must for socio-economic development and economic growth. Women make up over 50% or Pakistan’s population.
“Our country currently ranks at 145 out of 146 countries on the global gender gap report 2022,” she said, and sets a target to launch a Rs100 billion gender bond to improve the ranking in the future.
The government has demonstrated a steadfast commitment to advancing gender equality in Pakistan, aligning with both the country’s constitutional principles and its international obligations.
Akhtar, who is also the chairperson of PSX, acknowledged the pivotal role of two leading women, “the best women in the financial field (in Pakistan),” in the formation and the launch of the fund including InfraZamin, Chief Executive, Maheen Rahman and Kashf Foundation, Founding Managing Director, Roshaneh Zafar.
Kashf Foundation, CFO, Shahzad Iqbal said they have raised Rs2.5 billion from investors, including financial institutions like mutual funds and pension funds. “Financial institutions’ contribution stands at 50% in the fund.”
This is a three-year term finance certificate (TFC). “We will disburse financing from the fund to women only "at an interest rate of 20%.”
Read: Gender gap alert: 2024 Elections a wake-up call
This will not only allow women in the flood-hit areas to rebuild their homes, but working women will also be able to acquire financing through microfinance institution (Kashf) throughout Pakistan. “They (women) are required to approach us with a copy of their CNIC (identity card) only, and that is enough to avail the financing.”
The funds’ units will be available for trade among the general public at the PSX in about a month's time, he said. British Deputy High Commissioner in Karachi, Sarah Mooney said the gender bond has the ability to “leave a significant and genuine change for the people of Pakistan.”
Pakistan is facing challenges of climate change and population growth. “We are running a number of programmes to address the issues,” she said.
The UK remains a longstanding and strong partner of Pakistan in its efforts for economic development.
PSX, MD and CEO, Farrukh Khan, said the fund was missing for quite a long time to boost economic development in Pakistan. “Women’s empowerment will grow Pakistan's economy's size by 60% larger.”
PSX has included sustainable development goal-5 (SDG-5), which is about gender equality, in both the corporate governance and in its criteria for the top 25 companies award at the bourse.
In 2022, as many as 98 companies were shortlisted on the criteria for the award on the criteria and 65 of them have started reporting on gender equality.
InfraZamin, Chief Executive, Maheen Rahman said they have issued a ‘AAA+’ rating for the fund to attract financial institutions to invest in the fund. “We have guaranteed the risk of default.”
She said the recovery ratio of such microfinance stands at 99.5%, putting only half a percentage point of the financing at risk in the country. “We are aimed at developing the debt market at PSX.”
Published in The Express Tribune, December 1st, 2023.
Like Business on Facebook, follow @TribuneBiz on Twitter to stay informed and join in the conversation.
COMMENTS
Comments are moderated and generally will be posted if they are on-topic and not abusive.
For more information, please see our Comments FAQ