SBP stresses climate finance must go beyond green investments

The State Bank of Pakistan has called for climate finance to strengthen people’s ability to withstand and respond to climate hazards, alongside funding environmentally beneficial activity. Governor Jameel Ahmad made the case at the opening of a four-day policy program in Islamabad, arranged with the Alliance for Financial Inclusion for regulators from 24 countries. The gathering includes 38 participants from central banks and financial regulators.

Ahmad cited Pakistan’s 2022 floods, which brought nearly $15bn in physical damage and another $15bn in economic losses, affected more than 30mn people and harmed 2.2mn homes. He said farmers with small holdings, smaller businesses and low-income families face high climate exposure while often lacking insurance, savings or formal financial services. The governor also outlined Pakistan’s green finance rules and measures, including a climate risk framework and stress-testing guidance, and said delegates would discuss implementation, climate-smart farming and barriers facing women.