ISLAMABAD — Finance Minister Muhammad Aurangzeb has instructed authorities to expedite the rollout of three major social impact initiatives aimed at fostering skills development, financing smallholder farmers, and promoting energy efficiency. The initiatives, launched under the government’s broader development objectives, are expected to generate measurable social impact and advance Pakistan’s sustainable growth.
The first initiative reviewed was the Pakistan Skills Impact Bond (PSIB), the country’s first outcomes-based financing mechanism. Developed under the Ministry of Finance’s Social Impact Financing Framework, PSIB aims to mobilize private and philanthropic funding while aligning with several Sustainable Development Goals (SDGs). The minister emphasized that the PSIB must serve as a “trailblazer” to attract diverse investor participation.
The second initiative, the National Subsistence Farmers Support Scheme (NSFSS), is part of the government’s Access to Finance framework. It will provide digitally enabled, uncollateralized loans to smallholder farmers, including tenant farmers, through an innovative integration of agronomy satellite data into credit scoring models. The scheme is expected to transform rural financing and agricultural productivity while fostering financial inclusion.
The third initiative, the Prime Minister’s Fan Replacement Programme, aims to promote energy efficiency by enabling consumers to replace old ceiling fans with energy-efficient models at affordable financing rates. The scheme, backed by a nominal first-loss guarantee from the Ministry of Finance, also contributes to job creation and SME growth by collaborating with local manufacturers.
Minister Aurangzeb underscored the potential of these projects to serve as scalable models, both domestically and internationally, while signaling Pakistan’s readiness to innovate and deliver impactful results.
