Bank Alfalah, BII sign $50 million loan facility to expand climate finance in Pakistan

Bank Alfalah Limited has signed a $50 million senior term loan facility with British International Investment (BII) to expand climate finance for businesses and climate-resilient projects in Pakistan.

According to a news report, the agreement was signed at BII’s headquarters during London Climate Action Week by Bank Alfalah President and Chief Executive Officer Atif Bajwa and BII Chief Executive Officer Leslie Maasdorp. 

British High Commissioner to Pakistan Jane Marriott witnessed the signing ceremony.

Bank Alfalah will use the facility to finance eligible climate-related projects, including cleaner business solutions, climate-smart agriculture and modern water irrigation systems.

The partnership will also support agribusinesses, a sector exposed to climate risks but central to Pakistan’s economy.

BII will provide technical assistance to Bank Alfalah to help develop a pipeline of eligible climate assets and strengthen the bank’s capacity to finance climate mitigation and adaptation projects.

Atif Bajwa said the partnership would help mobilise international capital for sectors and businesses linked to Pakistan’s sustainable and resilient growth. He said it also reflected BII’s confidence in Bank Alfalah’s platform, governance standards and ability to deploy capital in high-impact opportunities.

Leslie Maasdorp said Pakistan was on the frontline of climate change and needed greater access to climate finance to build long-term resilience and support sustainable economic growth.

He said BII’s investment would channel capital towards climate mitigation and adaptation projects and the agricultural sector. He added that the facility was aligned with BII’s new five-year strategy, under which at least 40% of new investments will go to climate-related opportunities.

Jane Marriott said Pakistan faced major climate vulnerabilities but also had opportunities to attract investment for a greener and more resilient future.

She said the partnership showed how the United Kingdom and Pakistan could work together on climate action while promoting sustainable development.