SBP Governor Urges Inclusive Climate Finance at International Learning Program in Islamabad

State Bank of Pakistan (SBP) Governor Jameel Ahmad has urged that climate finance be directed toward the communities most exposed to climate shocks, including women, smallholder farmers and small businesses, noting that these groups often have the least access to formal financial services. He made the remarks while inaugurating a four-day joint learning program organised by the SBP and the Alliance for Financial Inclusion (AFI) in Islamabad.

The program brought together 38 participants from central banks and financial regulators representing 24 countries across four continents to discuss how inclusive green finance policies can be implemented in practice. Ahmad said climate change and financial exclusion are closely linked, and argued that climate finance should not be limited to supporting green investments but should also help communities anticipate risks, build resilience and adapt to a changing climate.

Citing the devastating floods of 2022, the governor said the disaster caused nearly $15 billion in physical damage and a further $15 billion in economic losses, affecting more than 30 million people and damaging 2.2 million homes. He said the scale of the disaster underscored the need for financial systems that are both green and inclusive.

Ahmad noted that Pakistan's financial inclusion rate has reached 71 percent, while the gender gap in financial inclusion has narrowed to 27 percent. He said Pakistan is sharing its Green Taxonomy and climate risk framework with regulators across the AFI network, and pointed to a series of regulatory measures introduced by the central bank, including the Green Banking Guidelines of 2017, the Environmental and Social Risk Management Framework of 2022, the Pakistan Green Taxonomy, regulations on climate-related financial risks and Climate Stress Testing Guidelines issued in December 2025.

The governor also highlighted the Pakistan Women Inclusive Finance Program, supported by the Asian Development Bank, and noted that Pakistan joined the Women Entrepreneurs Finance Code in 2025, with the SBP acting as the financial industry's anchor institution. He outlined the country's work under AFI's four pillars of Promotion, Provision, Protection and Prevention, explaining that the Green Taxonomy classifies environmentally sustainable activities while targeted financing schemes direct credit toward underserved groups.

Participants are expected to exchange experiences on implementing green finance, supporting climate-smart agriculture and addressing barriers to implementation, including gender-related challenges. Ahmad said the effectiveness of policy frameworks ultimately depends on their implementation and their impact on people's lives. AFI Director of Strategy, Member Engagement and Evaluation Aban Haq and World Bank Operations Manager Lasse Melgaard also addressed the opening session, stressing the role of knowledge-sharing platforms in spreading good practices in inclusive and sustainable green finance.