KARACHI: State Bank of Pakistan (SBP) Governor Jameel Ahmad has emphasised the need to make climate finance more inclusive, warning that the communities most vulnerable to climate change often have the least access to financial protection, insurance and formal banking services.
Thank you for reading this post, don't forget to subscribe!Addressing the inaugural session of a four-day joint learning programme organised by the SBP and the Alliance for Financial Inclusion (AFI) in Islamabad, he said smallholder farmers, micro and small enterprises, and low-income households were among those most exposed to climate-related disasters but least equipped to cope with their financial consequences.
He stressed that climate finance should extend beyond investments in green projects and focus on helping vulnerable communities anticipate climate risks, strengthen resilience and adapt to the growing impacts of climate change.
Referring to the devastating floods of 2022, Mr Ahmad said the disaster caused approximately $15 billion in physical damage and an additional $15 billion in economic losses. More than 30 million people were affected, while around 2.2 million homes were damaged.
Highlighting progress in financial inclusion, the SBP governor said Pakistan’s financial inclusion rate had reached 71 per cent, while the gender gap had narrowed to 27 per cent. He added that Pakistan was sharing its Green Taxonomy and climate risk framework with financial regulators across the AFI network to promote knowledge exchange and strengthen climate-related financial policies.
He also outlined several regulatory initiatives introduced by the central bank to integrate environmental and climate considerations into the financial system. These include the Green Banking Guidelines issued in 2017, the Environmental and Social Risk Management Framework introduced in 2022, Pakistan’s Green Taxonomy and regulations addressing climate-related financial risks, including the Climate Stress Testing Guidelines issued in December 2025.
On women’s financial inclusion, Mr Ahmad highlighted the launch of the Pakistan Women Inclusive Finance Programme with support from the Asian Development Bank. He also noted that Pakistan joined the Women Entrepreneurs Finance Code in 2025, with the SBP serving as the financial industry’s anchor institution.
The four-day learning programme has brought together 38 participants representing central banks and financial regulatory authorities from 24 countries across four continents.
The initiative provides a platform for international knowledge-sharing and collaboration on financial inclusion, climate resilience and the development of financial systems capable of protecting vulnerable communities against the growing economic risks of climate change.
Story by Shahid Iqbal
