SBP puts women, farmers and small businesses at centre of Pakistan's green finance agenda
SBP Governor Jameel Ahmad says climate finance must strengthen financial inclusion and help vulnerable communities build resilience against climate shocks.
Pakistan is placing women, smallholder farmers and small businesses at the centre of its green finance strategy, with the State Bank of Pakistan (SBP) seeking to expand access to climate-related financial services and strengthen resilience against climate shocks.
SBP Governor Jameel Ahmad made the remarks while inaugurating a four-day joint learning programme organised by the SBP and the Alliance for Financial Inclusion (AFI) in Islamabad on November 3.
The programme has brought together 38 international participants representing central banks and financial regulators from 24 countries across four continents to discuss the practical implementation of inclusive green finance policies.
Addressing the inaugural session, Ahmad said climate change and financial exclusion were closely linked, as communities most exposed to climate risks often have the least access to insurance, savings and formal financial services.
"Climate finance must do more than support green investments. It must also help communities anticipate risks, build resilience, and adapt to a changing climate," he said.
Highlighting Pakistan's experience with the devastating floods of 2022, the governor said the disaster caused nearly USD 15 billion in physical damage and another USD 15 billion in economic losses. More than 30 million people were affected, while 2.2 million homes were damaged.
He said these losses underscored the need for financial systems that are both environmentally sustainable and inclusive.
Ahmad noted that financial inclusion in Pakistan had reached 71%, while the gender gap had narrowed to 27%. He added that Pakistan was sharing its Green Taxonomy and climate risk framework with regulators across the AFI network.
The SBP's regulatory measures include the Green Banking Guidelines introduced in 2017, the Environmental and Social Risk Management Framework issued in 2022, Pakistan's Green Taxonomy, regulations on climate-related financial risks and Climate Stress Testing Guidelines issued in December 2025.
On women's financial inclusion, the governor highlighted the Pakistan Women Inclusive Finance Program, supported by the Asian Development Bank (ADB).
He also pointed to Pakistan's participation in the Women Entrepreneurs Finance Code in 2025, with the SBP serving as the anchor institution for the country's financial industry.
Under AFI's four pillars of Promotion, Provision, Protection and Prevention, Pakistan is working to classify green economic activities, direct financing towards underserved communities, strengthen women's financial resilience and prepare financial institutions for climate-related risks.
Ahmad said participants would exchange experiences on implementing green finance policies, supporting climate-smart agriculture and addressing challenges, including gender-related barriers.
"The success of any policy framework is ultimately measured by its implementation and its impact on people's lives," he said.
AFI Director of Strategy, Member Engagement and Evaluation Aban Haq and World Bank Operations Manager Lasse Melgaard also addressed the inaugural session.
They highlighted the importance of international knowledge-sharing platforms in promoting innovative approaches and spreading good practices in inclusive and sustainable green finance.
Melgaard appreciated the initiative for providing AFI member institutions with opportunities for peer learning, collaboration and the exchange of practical experiences.
The joint learning programme is being held in Pakistan for the first time. The SBP said the initiative reflects its commitment to inclusive and sustainable finance through practical policy implementation and international cooperation.
