KARACHI: Habib Bank Limited (HBL) has announced a significant investment, approving up to Rs2 billion in equity for its subsidiary, HBL Microfinance Bank Limited (HBL MfB). The move aligns with HBL’s broader strategy to strengthen its microfinance operations and expand financial inclusion efforts across Pakistan.
In a notice sent to the Pakistan Stock Exchange (PSX) on Thursday, HBL confirmed that its Board of Directors approved the investment on February 27, 2025. The decision is contingent upon meeting regulatory requirements and securing shareholder approval. This funding will enhance HBL MfB’s lending capacity, operational efficiency, and market reach.
Founded in 2002, HBL MfB focuses on reducing poverty and promoting economic empowerment by providing financial services to underserved communities. The HBL Rs2 billion investment is expected to accelerate these efforts, particularly in rural and urban areas where access to financial resources remains limited.
Additionally, on February 14, 2025, HBL Microfinance Bank partnered with the International Finance Corporation (IFC)—a member of the World Bank Group—to enhance microfinance lending in Pakistan. Under this risk-sharing agreement, backed by the Global Agriculture and Food Security Program (GAFSP), IFC will share 50% of the risk on HBL MfB’s microfinance loan portfolio, which amounts to $80 million. The initiative aims to provide better credit opportunities for smallholder farmers, microenterprises, and women entrepreneurs.