State Bank of Pakistan (SBP) Governor Jameel Ahmad has called for climate finance to prioritize women, smallholder farmers and small businesses, saying communities most exposed to climate shocks often have the least access to formal financial services.
Addressing the inauguration of a four-day joint learning program organized by SBP and the Alliance for Financial Inclusion (AFI) in Islamabad, Ahmad said climate change and financial exclusion were closely linked. The program brought together 38 participants from central banks and financial regulators in 24 countries across four continents to discuss the implementation of inclusive green finance policies.
Ahmad said climate finance should go beyond supporting green investments and help communities anticipate risks, strengthen resilience and adapt to climate change.
Pakistan’s Climate Risks Highlight Need for Inclusive Finance
The governor cited the devastating floods of 2022, which caused nearly $15 billion in physical damage and another $15 billion in economic losses. The disaster affected more than 30 million people and damaged 2.2 million homes, underscoring the need for financial systems that are both green and inclusive.
Ahmad said Pakistan’s financial inclusion rate had reached 71 percent, while the gender gap in financial inclusion had narrowed to 27 percent. He also noted that Pakistan was sharing its Green Taxonomy and climate risk framework with regulators across the AFI network.
The SBP’s regulatory framework includes the Green Banking Guidelines issued in 2017, the Environmental and Social Risk Management Framework introduced in 2022, the Pakistan Green Taxonomy, regulations on climate-related financial risks and Climate Stress Testing Guidelines issued in December 2025.
SBP Highlights Women’s Financial Inclusion and Climate Resilience
Ahmad highlighted the Pakistan Women Inclusive Finance Program, supported by the Asian Development Bank, and said Pakistan joined the Women Entrepreneurs Finance Code in 2025, with SBP serving as the financial industry’s anchor institution.
He also outlined Pakistan’s work under AFI’s four pillars of Promotion, Provision, Protection and Prevention. The Green Taxonomy classifies environmentally sustainable activities, while targeted financing schemes direct credit toward underserved groups.
Women-focused initiatives aim to strengthen financial resilience, while climate risk regulations and stress testing help financial institutions prepare for potential shocks.
Participants are expected to exchange experiences on implementing green finance, supporting climate-smart agriculture and addressing barriers to implementation, including gender-related challenges.
SBP and AFI Program Focuses on Policy Implementation
Ahmad said the effectiveness of policy frameworks ultimately depends on their implementation and impact on people’s lives. He thanked AFI for its partnership and said the program could strengthen peer networks and knowledge exchange among participating jurisdictions.
AFI Director of Strategy, Member Engagement and Evaluation Aban Haq and World Bank Operations Manager Lasse Melgaard also addressed the inaugural session, emphasizing the role of knowledge-sharing platforms in spreading good practices in inclusive and sustainable green finance.
Melgaard welcomed the platform created by SBP and AFI for collaboration and the exchange of implementation experiences among member institutions. The joint learning program is being held in Pakistan for the first time.
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