Bank Alfalah Limited has signed a $50 million senior term loan facility with British International Investment (BII), the United Kingdom’s development finance institution and impact investor, to expand climate finance in Pakistan and support businesses investing in sustainable and climate resilient projects.
The agreement was signed at BII headquarters in London during London Climate Action Week, held from June 20 to June 28. Atif Bajwa, President and Chief Executive Officer of Bank Alfalah, and Leslie Maasdorp, Chief Executive Officer of BII, signed the agreement in the presence of British High Commissioner to Pakistan Jane Marriott.
The partnership comes as Pakistan continues to face growing climate challenges, including devastating floods, rising temperatures, prolonged droughts and increasingly frequent extreme weather events. According to the World Bank and the Asian Development Bank, Pakistan remains one of the countries most vulnerable to climate change despite contributing less than one percent of global greenhouse gas emissions. The country requires billions of dollars in climate related investment over the coming years to strengthen resilience and protect economic growth.
Funding will support agriculture, water management and climate projects
Under the agreement, Bank Alfalah will use the $50 million facility to finance eligible climate projects across Pakistan. The investment will help businesses adopt cleaner technologies, improve climate resilience and expand sustainable operations.
The funding will support projects such as climate smart agriculture, modern water irrigation systems and other initiatives that reduce climate risks while improving productivity.
Agriculture remains one of Pakistan’s largest economic sectors and employs a significant share of the country’s workforce. However, it also faces some of the greatest risks from climate change through water shortages, flooding and changing weather patterns.
Alongside the financing, British International Investment will provide technical assistance to Bank Alfalah to help identify and develop a stronger pipeline of climate eligible projects. The support aims to strengthen the bank’s ability to evaluate, originate and finance investments that address both climate adaptation and mitigation.
Atif Bajwa, President and Chief Executive Officer of Bank Alfalah, said, “We are pleased to partner with British International Investment which reinforces Bank Alfalah’s commitment to supporting climate finance in Pakistan and raising international capital towards sectors and businesses that are critical for the country’s sustainable and resilient growth. This partnership also reflects the confidence of a leading global development finance institution in Bank Alfalah’s platform, governance, and ability to deploy capital towards high impact opportunities.”
UK backs Pakistan’s transition to a greener economy
Leslie Maasdorp, Chief Executive Officer of British International Investment, highlighted Pakistan’s growing need for climate investment.
“Pakistan is on the frontline of climate change, and increasing access to climate finance is critical to building long term resilience and supporting sustainable growth. Our investment in Bank Alfalah will help channel much needed capital to climate mitigation and adaptation projects, as well as the agricultural sector, a vital pillar of the country’s economy. It also reflects our commitment under our new five year strategy to scale climate finance, including our target of at least 40 per cent of new investments in climate related opportunities.”
British High Commissioner to Pakistan Jane Marriott also welcomed the agreement.
“Pakistan is highly vulnerable to climate change, but there is also a real opportunity to attract investment that supports a greener and more resilient future. This partnership between British International Investment and Bank Alfalah shows how the UK and Pakistan can work together to tackle the climate crisis.”
British International Investment has steadily increased its investments in Pakistan across financial services, renewable energy, infrastructure and sustainable development. The latest partnership reflects growing international efforts to mobilise private sector capital for climate action while helping Pakistan strengthen economic resilience against future environmental challenges.
