Women Microfinance Credit Guarantee Facility

ACFID Circular No. 01 — September 04, 2026

The Presidents/CEOs

All Banks and Development Finance Institutions (DFIs)

Dear Sir/Madam,

Women Microfinance Credit Guarantee Facility

1. As part of its commitment to advancing gender-inclusive finance, the Federal Government has launched Women Inclusive Finance Sector Development Program (WIFSDP) to improve women entrepreneurs’ access to finance and representation in the economy. The program includes components such as policy reforms, credit line facilities, and Women Microfinance Credit Guarantee Facility (WMCGF). The Program is expected to contribute significantly in improving women entrepreneurs’ access to finance and thus to the development of a more inclusive financial sector.
2. To operationalize the WMCGF, the Federal Government has established the Women Inclusive Finance Support Fund (WIFSF) Trust, with SBP as Trustee. The Trust will manage the existing credit lines under the WIFSDP as well as the Women Microfinance Credit Guarantee Facility (WMCGF). Under the WMCGF, banks’ and DFIs’ financing to NBMFCs and NBFCs for on-lending to women entrepreneurs will be guaranteed up to 25% of the portfolio on first loss basis, enabling these institutions to secure much-needed liquidity from banks and DFIs. The operational details, eligibility criteria, and reporting requirements are provided in Annexure-I, Annexure-II, and Annexure-III, respectively.
3. The banks/DFIs are encouraged to submit applications to SBP as per the details given in Annexure I for the allocation of guarantee limits in accordance with terms and conditions of the Scheme within 30 days of the issuance of the Circular.
4. Please acknowledge receipt.

Enclosed:

• Annexure-I: Terms & Conditions of the WMCGF
• Annexure-II: Environmental & Social Management Framework (ESMF)
• Annexure-III: Templates on Undertaking, Claim Submission, and Reporting

Yours sincerely,

Abid Qamar
Director

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Annexure-I: Terms & Conditions of Women Microfinance Credit Guarantee Facility (WMCGF) 1 | Page 1 Introduction The Women Microfinance Credit Guarantee Facility (WMCGF) aims to address liquidity constraints of the microfinance sector by providing first‑loss guarantees of up to 25% to commercial banks and development finance institutions (DFIs) against their financing to Non‑Bank Microfinance Companies (NBMFCs) and Non‑Bank Finance Companies (NBFCs). The coverage is designed to facilitate NBMFCs and NBFCs to secure financing from banks and DFIs for on-lending to women‑led microenterprises in the country. Under the Guarantee Facility, NBMFCs shall extend loans of PKR 25,000 to PKR 3 million for a period of up to 36 months. PFIs shall be provided the guarantees without any fee. 2 Criteria for Participating Financial Institutions (PFIs) While submitting the applications for guarantee limits, PFIs (banks & DFIs) shall ensure that they:
a) demonstrate profitability with average return on assets (before tax) not less than 1% b) maintain a net non‑performing loans to capital ratio not exceeding 15% c) comply with minimum capital adequacy ratio as prescribed under SBP regulations d) comply with applicable national laws and policies on integrity, anti‑money laundering (AML), and counter‑terrorist financing (CTF), and must not be listed on the ADB Debarment and Suspension Register (Home | ADB Debarment and Suspension Register) e) exhibit sound financial management practices including effective audit systems, internal controls and governance standards, in accordance with SBP regulations 3 Criteria for Beneficiary Financial Institutions (BFIs) PFIs shall extend financing under the Facility to a BFI satisfying following minimum eligibility criteria:
a) Gender-centric women finance strategy and Reporting
i. a plan to increase number and volume of active women enterprise loan accounts
ii. a plan to enhance the women centric product lines for reaching out to rural and urban
women income earning households and Micro & Small enterprises (MSEs)
iii. a plan to raise board, senior management, and staff awareness on women centric
business needs
iv. a plan to build awareness and financial literacy of women clients.
b) Robust financial performance, corporate governance, and management
i. 3-year average Operational Self-Sufficiency (OSS) above 100%
ii. demonstrate profitability with average return on assets (before tax) not less than 1%
iii. maintain a net non-performing loans to capital ratio not exceeding 15%
iv. comply with minimum capital requirement as prescribed under SECP regulations
v. exhibit sound financial management, audit, internal controls and governance in
accordance with SECP regulations
vi. satisfy the portfolio quality, and the capacity to sustainably recover operational costs
vii. comply with national laws and policies, related to integrity and antimony laundering
and counter terrorist financing policies
In addition to the minimum eligibility criteria set out in para (a) & (b) above, a PFI shall, when evaluating a liquidity request from a BFI:
a) ensure that financing is extended by the NBMFCs exclusively to women‑led, income‑generating households and businesses

Annexure-I: Terms & Conditions of Women Microfinance Credit Guarantee Facility (WMCGF) 2 | Page b) ensure, in line with responsible finance practices, that women borrowers fully understand the terms and conditions of loans extended by NBMFCs, thereby safeguarding against risks of over‑indebtedness c) obtain confirmation from BFIs that loans financed under the Facility will be limited to those classified as having no or only minor environmental and social impacts, in accordance with the Environment and Social Management Framework (ESMF) and the ADB Safeguard Policy Statement (SPS) 2009 (Annexure-II) d) ensure loans repaid to the NBMFCs during the approved tenor are lent again to women beneficiaries. 4 Allocation of Limits and Conditions for Calling on Guarantee a) Guarantee limits shall be assigned to banks/DFIs based on their requests. b) Performance of the PFIsshall be monitored against their allocated limits on quarterly basis or more frequently, if necessary. Based on the performance of PFIs, their assigned limits may be enhanced, reduced or withdrawn. c) Guarantee limits assigned to a PFI may be withdrawn, if it is discovered at any stage that the BFI was not eligible for financing under the scheme at the time the facility was extended. In such cases, the PFI will bear 100 percent of the credit risk for that BFI. d) PFIs may submit guarantee claims, if the following conditions are met:
i. The guarantee for that financing facility is active.
ii. The amount due to the bank/DFI has not been paid and the dues have been classified
as ‘Loss’ i.e. where mark-up/ interest or principal is overdue by one year or more from the due date, as per prudential regulations for corporate/ commercial banking of SBP. 5 Submission of Guarantee Requests/ Claims a) PFIs shall remain responsible for recoveries, and from the recoveries made in this regard, the Trust share (up to 100%) shall be credited to the WMCGF account. b) PFIs shall use digital platforms (Regulatory Approval System (RAS)) for submitting their guarantee applications and guarantee claims or as advised from time to time in order to ensure faster and efficient handling of claims besides reducing administrative burden and improving transparency. c) PFIs shall ensure that the guarantee claims are submitted to the FISD, SBP BSC as per the template given in Annexure-III. d) FISD, SBP BSC shall process the claim within 10 working days, provided the claim follows the prescribed application format, procedure and requisite information. 6 Environmental & Social Safeguards PFIs shall establish an Environmental & Social Management System (ESMS) and carry out environmental and social due diligence in line with attached Environmental & Social Management Framework (Annexure-II). 7 Monitoring & Reporting a) PFIs shall keep record of all financing extended under the facility and submit a comprehensive borrower-wise report on quarterly basis (or as and when required) as per the templates. b) PFIs shall submit an E&S report on yearly basis as per the reporting requirements.

Annexure-I: Terms & Conditions of Women Microfinance Credit Guarantee Facility (WMCGF) 3 | Page c) SBP inspection teams may inspect the relevant portfolio of PFIs for compliance of the terms and conditions embodied herein. 8 Contact Details The following contact details at SBP may be used for matters related to limit allocation, reporting and other related queries:
The WIFSF Trust Secretariat
Agriculture Credit & Financial Inclusion Department, State Bank of Pakistan, I.I. Chundrigar Road, Karachi. Email: WIFSF.Trust@sbp.org.pk The contact details at FISD, SBP BSC for matters related to claims submission and allied documentation etc. are as follows:
Financial Inclusion Support Department
Head Office, SBP BSC, I.I. Chundrigar Road, Karachi Email: FSMD@sbp.org.pk

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Annexure-II: Environmental and Social Management Framework (ESMF) 1 | Page A. Introduction and Scope

1. This Framework describes environmental and social safeguard requirements pertaining to relevant
   national laws and regulations, as well as ADB’s Safeguard Policy Statement (SPS, 2009) as set out in Annexure-A.
2. Considering the SBP’s Green Banking Guidelines (SBP Circular 08 issued in October 2017 as well as
   subsequent SBP instructions), PFIs/ BFIs will be responsible to avoid adverse environment and social impacts as defined therein.
3. This document defines required policies and processes for screening and identifying adverse
   environmental and social impacts and avoiding associated risks that may result from lending to sub￾borrowers under WMCGF. It has the following elements:
   (i) Compliance with environmental and social safeguards based on applicable national laws. (ii) Identification of environmental and social risks and adverse impacts and categorization of sub-loans based on nature of activities, scale of operations, technology, locations, significance and severity of risks and impacts. (iii) Avoidance of environmental and social safeguards risks and impacts through exclusion of such activities, unless impacts are considered minor. (iv) Staffing and related skills required. B. Legal Frameworks for Environmental and Social Safeguards National and Provincial Environmental Laws
4. This section provides an overview of relevant legislation (both federal and provincial) applicable for
   the mitigation of environmental impacts. Any loan application considered from the end borrowers (sub-loan) needs to comply with applicable environmental policies, acts, and guidelines, issued by Pakistan’s national and provincial governments.
5. With the 18th Constitutional Amendment in 2010, the environment, as a subject, has been fully
   devolved to the provinces and the environmental legislation is a provincial responsibility. Provincial Environmental Acts
6. The following provincial environmental acts are in effect:

• Sindh Environmental Protection Act, 2014
• Punjab Environmental Protection (Amendment) Act, 2017
• Baluchistan Environmental Protection Act, 2012
• Khyber Pakhtunkhwa Environmental Protection Act, 2014

7. Each provincial act defines requirements for environmental assessment and due diligence within
   public and private sector investments and operations.
   Provincial Acts to prevent Child Labor
8. The following acts are in effect to prevent child labor:

• Punjab Restriction on Employment of Children Act, 2016
• Khyber Pakhtunkhwa Prohibition of Employment of Children Act, 2015
• Baluchistan Employment of Children (Prohibition & Regulation) Act, 2021
• Sindh Prohibition of Employment of Children Act, 2017

9. These acts state that no child shall be employed or permitted to work in any of the occupations or
   any workshop as set forth in these acts (such as transport sector, railways, construction, and ports).

Annexure-II: Environmental and Social Management Framework (ESMF) 2 | Page Prohibited child labor activities include carpet weaving, biri (kind of a cigarette) making, cement manufacturing, textile, construction, mining, working in kilns and others). Provincial Workers’ Compensation Acts
10. The following acts are in effect related to workers’ compensation:

• Punjab Workmen’s Compensation (Amendment) Act, 2013
• KPK Workers Compensation Act, 2013
• Sindh Workers Compensation Act, 2016
• Baluchistan The Workmen Compensation Act, 1923

11. These acts deal with compensation by the employers to workers related to accidents during work.
    These acts are relevant to BFIs and their sub-borrowers.
    Provincial Factories Acts
12. The following acts are in effect relating to factories:

• Sindh Factories Act, 2015
• KPK Factories Act, 2013
• Baluchistan Factories Act, 2021
• Punjab Factories (Amendment) Act, 2012

13. The factories acts provide that no adult worker shall be allowed to work in a factory for more than
    48 hours per week; if the factory is seasonal, 50 hours per week are permitted and if the work is of a continuous nature, up to 56 hours per week are permitted. Daily hours may not exceed 9 hours or in case of seasonal work 10 hours.
    C. Categorization of Sub-Loans and Reporting Requirements
    Environmental Safeguards
14. BFIs shall screen environmental impacts for each sub-loan as to its type, location, scale, and
    sensitivity and the magnitude of its potential environmental impacts. Environmental impacts include those related to the natural environment (air, water and land), human health and safety aspects. Social Safeguards
15. Social Safeguards in this policy entail Involuntary Resettlement (IR) and Indigenous Peoples (IP) under
    ADB’s SPS 2009.
    Involuntary Resettlement
16. The Constitution of Pakistan (1973) protects individual property rights in Article 24 as follows: “no
    person shall be deprived of his/ her property save in accordance with law” (Article 24(1)), and “no property shall be compulsorily acquired or taken possession of save for a public purpose, and save by the authority of law which provides for compensation therefor and either fixes the amount of compensation or specifies the principles on and the manner in which compensation is to be determined and given” (Article 24(2)).
17. Further, Article 4(2a) reiterates the right of the people by stating that “No action detrimental to the
    life, liberty, body, reputation or property of any person shall be taken except in accordance with law”. Further, the Land Acquisition Act, 1894 (LAA) provides for acquisition of land and compensation to the titleholders.

Annexure-II: Environmental and Social Management Framework (ESMF) 3 | Page
18. ADB’s SPS relates to IR via relocation or loss of shelter or related economic impacts such as loss of
assets or access to assets that lead to loss of income or means of livelihood through:
(i) expropriation based on eminent domain, (ii) expropriation resulting from the absence of a negotiated settlement, or (iii) clearance of assets established on publicly owned land and public right of way. It does not apply to physical displacement or resettlement resulting from voluntary land transactions.
19. BFIs may not fund any activities of sub-borrowers involving IR.
Indigenous Peoples (IPs)
20. Although the Government of Pakistan (GOP) does not explicitly recognize IPs, Article 36 of the
Pakistan Constitution requires the authorities to safeguard the legitimate rights and interests of minorities. While Pakistan does not have national policies on indigenous and tribal peoples, it ratified the International Labor Organization (ILO) Convention 107 on Indigenous and Tribal Populations in 1960.
21. ADB’s SPS relating to IPs ensures that the design and implementation of ADB funded projects foster
full respect for IPs’ identity, dignity, human rights, livelihood and cultural uniqueness as defined by IPs to receive appropriate social and economic benefits and avoid harm by ADB funded projects.
22. To avoid any adverse IP impacts under the ADB funded programs, the BFIs will not fund activities of
sub-borrowers in the settlement areas of the Kalash located in the Chitral region and the ‘Makranis’, residing along the Makran coast.
23. PFIs to ensure submission of the ESMF reports on sub-loans issued under the Scheme as per their
reporting arrangements with the BFIs, including their risk classification. A list of typical sub-loan activities considered acceptable (classified ‘C’ under the ADB’s SPS) is provided in Annexure-B. Responsibilities of BFIs
24. The ESMF will be maintained by each BFI to ensure that:
i. Sub-borrower has provided to the Credit officer or Relationship Manager relevant documentation
and official permits related to the operation of a sub-project.
ii. Credit Officer or Relationship Manager or authorized official has properly screened and
categorized sub-loans, and eliminated any ineligible sub-loans as stated in Annexure-C and category ‘A’ or ‘B’ sub-loans before submission to the credit committee.
iii. Proper auditing is performed in the context of regular internal audit function to ensure that the
categorization complies with this ESMF and that any issues are reported and addressed by management.
iv. Are able to represent compliance with this ESMF in their annual report to SBP through PFIs.
Staffing of BFIs
25. Each BFI will have the following focal staff for implementation of this ESMF:
i. Relationship Manager or authorized official will screen each sub-loan request against the PIAL and
classify each sub-loan to ensure that only category ‘C’ sub-loans are submitted for approval.
ii. Risk Officer who also covers the safeguard function will review the credit proposal of the credit
officer before submission to the credit committee to ensure compliance with applicable laws and this ESMF.
iii. The internal audit function will periodically audit related credit operations, including compliance
with the ESMF.
D. Environmental and Social Compliance through Screening
26. BFIs shall use the following process to comply with (i) national safeguard systems and (ii) ADB’s SPS

Annexure-II: Environmental and Social Management Framework (ESMF) 4 | Page (2009). a) The BFI will screen each sub-loan prior to funding against the Prohibited Investment Activities List (PIAL, Annexure-C) to exclude funding under the Scheme. b) After PIAL screening, proposed sub-loans will be screened to ensure that only sub-loans categorized ‘C’ are admitted for processing to classify the expected environmental, IR and IP impacts. A screening checklist on Environment, IR and IP risks is provided as Annexure-D. c) The sub-loan screening will:
i. identify specific (physical, biological, social, cultural) risks.
ii. determine land ownership, the need for land transactions and possible impacts on livelihoods.
iii. identify vulnerable groups that require special attention.
iv. Identify IP presence and determine any potential impacts on the communities.
Sub-loan categorization
27. Environmental Impacts Category C: Only proposed sub-loan activities that are not in close proximity
to any environmentally sensitive area or religious or cultural site, and there are low or temporary environmental impacts can be categorized as ‘C’ and be eligible for financing.
28. IR Category C: Only proposed sub-loan activities that do not involve IR can be categorized as ‘C’ and
be eligible for financing.
29. IP categorization Category C: Only proposed sub-loan activities that are not located in the Kalash and
Makrani coast can be categorized as ‘C’ and be eligible for financing.
Table 1: Sub-loan Proposal Eligibility for Financing
Environmental Categorization IR Categorization IP Categorization A Significant environmental impacts; Not eligible for financing Significant IR impacts (200 or more persons); Not eligible for financing Significant impacts; Not eligible for financing B Less significant, site- specific environmental impacts; Not eligible for financing Less significant IR impacts; Not eligible for financing Insignificant impacts; Not eligible for financing C Low or no impact; compliance with national laws & regulations required Eligible for financing No impact; no monitoring requirement Eligible for financing No impact; no monitoring requirement Eligible for financing Compliance Monitoring and Reporting
30. For category ‘C’ classified sub-projects, on-site supervision is not necessary.
31. BFIs will ensure that the consolidated screening checklists are systematically filed. These documents
will be made available to their internal audit, SBP and ADB on request. ADB may conduct periodic review missions which may include review of screening checklists in its performance audit function.
32. PFIs to submit consolidated annual environmental and social performance report as per Annexure E.
In the annual reports, PFIs will confirm that only sub-projects categorized as ‘C’ for environment with no impacts on IR and IP, have been financed. Grievances
33. The sub-loan borrowers may submit any grievance through BFIs’/PFIs’ established grievance
processes in compliance with SBP/ SECP regulations.

Annexure-II: Environmental and Social Management Framework (ESMF) 5 | Page ANNEXURE-A: Key applicable ADB Safeguard Policies

1. Where investments of the BFIs have minimal or no adverse social or environmental risks, the project
   will be treated as category C project and need not apply any other specific requirements.
2. BFIs screening procedure will ensure that all subprojects are screened against the prohibited
   investment activities list (Annexure-C).
3. Sub-projects involving business activities included in the prohibited investment activities list do not
   qualify for PFIs support and applications involving such activities will be rejected.
4. BFIs will appoint a member of its management or one or more staff responsible for day-to-day
   implementation of the ESMF to have overall responsibility for environmental and social impacts under the project.
5. Where the subprojects financed have potential for significant environmental or social impacts, the
   PFIs will disqualify such subprojects.

Annexure-II: Environmental and Social Management Framework (ESMF) 6 | Page ANNEXURE-B: Typical Sub-Loan Activities Trade Textiles, clothing, shoes Food, Drinks Production and sale of consumer goods Stationary Electronic appliances Furniture Vehicles and spare parts Construction materials Pharmacy Equipment/ machinery for production Oil products Services Photographs Secretarial and translation activities Lawyers, Legal advice Accounting, Audit, Tax consultancy Market research and public opinion polling Architects and Engineers Advertising and PR Security Services Industrial Cleaning Hospital, clinic services Medical services Veterinary services Education, school, social work, kindergarten Other Social Services Travel and ticketing services Restaurant, Café, Bar, Canteen, Catering Sports and Fitness Motion picture and video production Radio and television, film, music production Literature publication, library, and archive services Beauty, Hair Repair and renovation of household goods Telephone, Internet Provider, social media services Agriculture Fruits and Nuts Vegetables and Horticulture Cereals Cotton Rice Tea/ Tobacco Other crop growing Forestry and Logging Cattle and dairy farming Sheep, Goats, horses, poultry, bee keeping Fish breeding Agriculture related services and agricultural inputs

Annexure-II: Environmental and Social Management Framework (ESMF) 7 | Page 26 25 27 28 29 30 ANNEXURE-C: Prohibited Investment Activities List (PIAL) The following do not qualify for financing:
(i) Production or activities involving harmful or exploitative forms of forced labor1 or child labor2 ; (ii) Production of or trade in any product or activity deemed illegal under Pakistan’s laws or regulations or international conventions and agreements or subject to international phase outs or bans, such as (a) pharmaceuticals3 , pesticides, and herbicides4 , (b) ozone-depleting substances5 , (c) polychlorinated biphenyls6 and other hazardous chemicals7 , (d) wildlife or wildlife products regulated under the Convention on International Trade in Endangered Species of Wild Fauna and Flora8 , and (e) transboundary trade in waste or waste products9 (iii) Production of or trade in weapons and munitions, including paramilitary materials; (iv) Production of or trade in all types of alcoholic beverages, (v) Production of or trade in tobacco10; (vi) Gambling, casinos, and equivalent enterprises11; (vii) Production of or trade in radioactive materials12, including nuclear reactors and components thereof; (viii) Cross-border trade in waste and waste products, unless compliant with the Basel Convention and the underlying regulations; (ix) Production or activities involving harmful or exploitative forms of forced labor or harmful child labor; (x) Activities involving land acquisition and/or restrictions on land use resulting in involuntary resettlement or economic displacement; (xi) Any activities involving significant degradation or conversion of natural and/or critical habitats and/or any activities in legally protected areas; (xii) Production, trade, storage, or transport of significant volumes of hazardous chemicals, or commercial scale usage of hazardous chemicals (gasoline, kerosene, other petroleum products, textile dyes, and so on); (xiii) Production or activities that have adverse impacts, including relocation, on the lands, natural resources, or critical cultural heritage subject to traditional ownership or under customary use by Indigenous Peoples; (xiv) Activities involving significant adverse impacts on critical cultural heritage; (xv) Activities resulting in conflicts between different castes or religious sects; (xvi) Activities resulting in loss of trees; (xvii) Activities resulting in contamination of groundwater and/or surface water bodies; (xviii) Activities threatening the safety of communities; 1 Forced labor means all work or services not voluntarily performed, that is, extracted from individuals under threat of force or penalty. 2 Child labor means the employment of children whose age is below the host country's statutory minimum age of employment or employment of children in contravention of International Labor Organization Convention No. 138 "Minimum Age Convention" (www.ilo.org l. 3 A list of pharmaceutical products subject to phaseouts or bans is available at http://www.who.int. 4 A list of pesticides and herbicides subject to phaseouts or bans is available at http://www.pic.int. 5 A list of the chemical compounds that react with
and deplete stratospheric ozone resulting in the widely publicized ozone holes is listed in the Montreal Protocol, together with target reduction and phaseout dates. Information is available at http://www.unep.org/ozone/montreal.shtml. 6 A group of highly toxic chemicals, polychlorinated biphenyls are likely to be found in oil-filled electrical transformers, capacitors, and switchgear dating from 1950 to 1985. 7 A list of hazardous chemicals is available at http://www.pic.int. 8 A list is available at http://www.cites.org. 9 As defined by the Basel Convention; see 10 This does not apply to subproject sponsors who are not substantially involved in these activities. Not substantially involved means that the activity concerned is ancillary to a subproject sponsor's primary operations. 11 This does not apply to subproject sponsors who are not substantially involved in these activities. Not substantially involved means that the activity concerned is ancillary to a subproject sponsor's primary operations. 12 This does not apply to the purchase of medical equipment, quality control (measurement) equipment, and any equipment for which the radioactive source to be trivial and adequately shielded.

Annexure-II: Environmental and Social Management Framework (ESMF) 8 | Page (xix) Production or trade in or use of non‐biodegradable packaging material such as polythene bags and Styrofoam; (xx) Nuclear power plants (apart from measures that reduce environmental hazards of existing assets) and mines with uranium as an essential source of extraction; (xxi) Prospection, exploration and mining of coal; land-based means of transport and related infrastructure essentially used for coal; power plants, heating stations and cogeneration facilities essentially fired with coal, as well as associated stub lines; (xxii) Non-conventional prospection, exploration and extraction of oil from bituminous shale, tar sands or oil sands; (xxiii) Production of, trade in, or use of unbonded asbestos fibers13; (xxiv) Commercial logging operations or the purchase of logging equipment for use in primary tropical moist forests or old-growth forests; and (xxv) Marine and coastal fishing practices, such as large-scale pelagic drift net fishing and fine mesh net fishing, harmful to vulnerable and protected species in large numbers and damaging to marine biodiversity and habitats. (xxvi) Additionally, in the Pakistani context, borrowers will not be allowed to:
 Engage in cultivation, processing, and sale of poppy and/ or other illegal addictive substances (for example, heroin, hashish, opium, bhang).  Sale of addictive substances such as tobacco, gutka, niswar, cigarettes, beeri, hukka, paan parag, sheesha and any other products containing such substances to persons under the age of 18  Illegal wood extraction  Hunting, poaching and fishing in protected areas  Informal cross‐border trade  Smuggling or sale and handling of smuggled goods. 13 This does not apply to the purchase and use of bonded asbestos content sheeting where the asbestos content is less than 20%.

Annexure-II: Environmental and Social Management Framework (ESMF) 9 | Page ANNEXURE-D: Sub-Loan Environment & Social Safeguards Screening Checklist (To be used by the BFIs for assessing and verifying each sub-loan) Name of BFI: …………………………………………………. Date of Screening (D/M/Y): ………/………../…………..
Section A: Basic information
Borrower Name: …………..…………..…………..………………….……………………………......
Location: …………..…………..…………..………… Union Council: ……………..…………..….
District: …………..…………..………………………………………………………………………………..
Section B: Checklist for Environmental Screening14
S. No. Intervention Issues Yes No N/A Remarks
1 Will the subproject be in an area exposed to climate change related risks (ex. floods, droughts, cyclones etc.)? 2 Will the subproject cause high air pollution? 3 Will the subproject cause high noise pollution disturbing nearby communities and biodiversity (birds)? 4 Will the subproject result in loss of topsoil? 5 Are there Sensitive Receptors near the Subproject Site (Hospitals, Schools, and Residences)? 6 Eligible for Financing Environment: (A,B,C) IR: (A,B,C) IP: (A,B,C)
7. Safeguards Category
Prepared by Checked by Approved by Credit Committee Relationship Manager Risk Officer Note: ESMF screening and categorization responsibilities rest with the sub-loan originator/BFI, while banks/DFIs shall ensure compliance through covenants and agreed reporting mechanisms. 14 The responses to the screening questions are to be provided in a qualitative context based on the scope, scale and sensitivity of the proposed sub-loan activity and as a result, a category for Environment, IR and IP will be assigned.

Annexure-II: Environmental and Social Management Framework (ESMF) 11 | Page ANNEXURE-E: Annual Environmental & Social Safeguards Report (To be submitted by the PFIs on behalf of the BFIs) Please include additional sheets or attachments as required to provide details. Name of BFI Completed by (name):
Position in organization: Date:
Reporting period From: To:
A. Sub-loans processed during the reporting period Sector Sub-loan Volume (PKR 000) No. of Sub-loans disbursed Safeguard Category Environmental, IR or IP issues and Env IR IP actions taken Env = environment, IR = involuntary resettlement, IP = indigenous peoples B. Additional Information for the Reporting Period

1. Please provide details of any sub-projects where field visit(s) were conducted to review aspects,
   including social and environmental issues.
   1.
   2.
   3.
   4.
   5.
2. Please provide details of any accidents/ litigation/ complaints/ regulatory notices and fines, their
   causes and corrective actions taken.
   1.
   2.
   3.
   4.
   5.
   Note: ESMF screening and categorization responsibilities rest with the sub-loan originator/BFI, while Banks/DFIs shall ensure compliance through covenants and agreed reporting mechanisms.

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Annexure-III: WMCGF: Templates on Undertaking, Claim Submission and Reporting 1 | Page 1 Template for ‘Undertaking Form for Banks/DFIs’ Undertaking under Women Microfinance Credit Guarantee Facility The Women Inclusive Finance Support Fund (WIFSF) Trust has introduced the Women Microfinance Credit Guarantee Facility (“WMCGF”). Pursuant to the WMCGF terms and conditions, our institution is eligible for the WMCGF.

1. We acknowledge having accepted the terms and conditions of the WMGCF and undertake to abide by
   the same. The WMCGF shall be utilized in accordance with its terms and conditions, and we shall lodge a claim for the defaulted amount to the extent as provided hereinabove. We shall maintain proper accounts of the WMCGF and make the same available for inspection by the Trust as and when required.
2. We also agree that in case of any misstatement or misrepresentation, the Trust would have the right to
   recover any amount wrongfully claimed or take any other action or avail any remedy available under law and the terms & conditions of the WMCGF. Yours faithfully, For and on behalf of bank/DFI (Name): ……………………………… Designation: ………………………………………………………………………. Authorized Signatory: ………………………………………………………… (Please attach a certified copy of Board Resolution/Power of Attorney authorizing the execution of the Undertaking)

Annexure-III: WMCGF: Templates on Undertaking, Claim Submission and Reporting 2 | Page 2 Template for ‘Guarantee Claim Form to be submitted by Banks/DFIs’ [To be submitted on Bank/DFI Letterhead to FISD, SBP BSC] Date: DD/MM/YY The Director Financial Inclusion Support Department (FISD) State Bank of Pakistan Banking Services Corporation Head Office, I.I. Chundrigar Road Karachi-74000 Dear Sir/Madam,

1. We hereby make and submit a formal claim on the Women Microfinance Credit Guarantee Facility
   (WMCGF) under the terms and conditions.
2. We hereby confirm and certify that the [NBMFC/NBFC] (the “Borrower”) has failed to make payments
   and has been classified as 'Loss' on [date], in accordance with the SBP Prudential Regulations for Corporate/Commercial Banking and the terms of the facility extended to it by our bank/DFI.
3. Therefore, we request the FISD, SBP BSC to credit our account no. ………..……. with the SBP BSC for an
   amount of Rupees …………………………. (to be calculated up to 25% or as advised by the Trust from time to time).
4. We provide following details to support our claim:
   TABLE 1: Details of the facility
   Details of facility in default Details of Repayments if any with respect to such facility Amount in Default/Loss Period of Default Date Amount Disbursed Date Amount Repaid
   TABLE 2: Information about the BFI (s) and Expectation of recovery
   a) Name and Address of the BFI (s) b) Details of action so far taken to effect recovery of the amount in default c) Details of action recommended to be taken d) Other comments including views on the ultimate recovery of the amount in default
5. Date-wise details of all disbursements and repayments are enclosed in support of this request.
6. On receipt of funds under this claim, we solemnly and irrevocably undertake:
   a. To exercise the same degree of diligence in recovering funds from the borrower as we would have exercised if no guarantee had been issued to us. b. That any recoveries, assets, or proceeds subsequently realized from the BFI post-settlement of this claim shall be immediately credited to the designated WMCGF account, up to 100% of the settled claim amount, within five (5) working days of receipt.
   c. That the Trust will be discharged from its liability under the guarantee to the extent of any amount
   paid in respect of this claim.

Annexure-III: WMCGF: Templates on Undertaking, Claim Submission and Reporting 3 | Page
7. It is certified that the applicable minimum period required for classification as 'Loss' has elapsed between
the relevant due date and the date of this Claim, in accordance with the SBP prudential regulations.
8. It is certified that the above facts, E&S classifications under Annexure-II, and representations are correct,
complete, and true to the best of our knowledge, and no material information has been concealed or misrepresented. Yours faithfully, For and on behalf of bank/DFI (Name): ……………………………… Designation: ………………………………………………………………………. Authorized Signatory: …………………………………………………………

Annexure-III: WMCGF: Templates on Undertaking, Claim Submission and Reporting 4 | Page Format for ‘Quarterly Reporting on WMCGF’ Note: PFIs shall submit this summary quarterly status report together with comprehensive borrower-wise details for the relevant quarter, in the format and through the platform prescribed by SBP from time to time. WMCGF Status as on [date] (Amount in PKR Million) S # PFI (s) BFI (s) Amount Sanctioned Tenor Interest Rate Option Issuance Date Max. Exposure Current Outstanding Amount Exposur e on WMCGF Funds 1 ABL ASA 1000 3 Years 6MK+2% 25% First Loss 29-Jun￾10
300.0 Loan Repaid NIL
Sector Wise Break up - as on [date] (Amount in PKR Million) Sector(s) rate Coverage Guarantee Outstandin g Amount No. of Borrowers Settled Repaid/ Amount on Status Classificati Sectors to be identified from the list provided in Annexure II. Note: BFIs shall maintain district-wise data regarding end-borrowers of the Scheme.