State Bank of Pakistan (SBP) Governor Jameel Ahmad underscored the need to expand credit for climate resilience and sustainable growth, emphasizing that the financial sector should align with the global shift toward sustainability.
“It is essential that we leverage our financial sector’s potential to align with the global shift toward sustainability, thereby contributing to both our national priorities and international commitments,” he stated at the “Enabling Green Financing and Green Bonds via Credit Enhancement Solutions” event organized by InfraZamin Pakistan.
Highlighting Pakistan’s vulnerability to climate change, including $30 billion in economic losses from the 2022 floods, Ahmad reiterated the country’s commitment to the Paris Agreement, aiming for a 15% emissions cut by 2030, with another 35% contingent on external funding.
He shared that the SBP has financed 4,500 renewable energy projects with Rs. 94.7 billion by June 2024 and issued Green Banking Guidelines to enable regulated entities to recognize and manage environmental risks arising from their operations. In collaboration with the World Bank, SBP is crafting a Green Taxonomy to classify green activities and aid capital flow into sustainable initiatives.
In its Strategic Plan 2023-28, SBP has included climate change risk, aiming to enhance technological innovation, diversity, inclusion, and competitiveness. The event also included speeches by leaders from GuarantCo, InfraZamin Pakistan, and the Pakistan Banks’ Association.
