Climate finance must protect vulnerable communities: SBP

At a financial inclusion programme in Islamabad, SBP Governor Jameel Ahmad said climate-related financing should help at-risk households and businesses prepare for and recover from environmental shocks, not focus solely on environmentally friendly projects. He identified small farmers, smaller businesses and poorer households as especially exposed, while noting their limited access to insurance, savings and regulated financial services.

Ahmad cited the 2022 floods, which affected over 30 million people and damaged 2.2 million homes; reported losses included $15 billion in physical damage and a further $15bn in economic harm. He also said access to financial services in Pakistan stood at 71 per cent and the gender gap was 27pc, while describing SBP frameworks for green banking and climate-related financial risks. Dawn reported that the four-day programme, run by SBP and the Alliance for Financial Inclusion, included 38 participants representing regulators from 24 countries.