Pakistan’s green finance agenda must help women, smallholder farmers and small businesses withstand climate shocks, State Bank Governor Jameel Ahmad said on Tuesday.
He inaugurated a four-day joint learning programme organised by SBP and the Alliance for Financial Inclusion (AFI) in Islamabad. It brings together 38 international participants from central banks and financial regulators across 24 countries on four continents.
Pakistan is hosting the programme for the first time. Running from November 3 to 6, it focuses on translating inclusive green finance policies into practical action.
Climate shocks deepen financial exclusion
Ahmad said climate change and financial exclusion are closely connected. Smallholder farmers, micro and small enterprises, and low-income households face high exposure to climate shocks. Yet they often lack insurance, savings and formal financing.
“Climate finance must do more than support green investments. It must also help communities anticipate risks, build resilience, and adapt to a changing climate,” the Governor said.
He cited Pakistan’s devastating 2022 floods, 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.
The World Bank-supported post-disaster assessment estimated damage at $14.9 billion and economic losses at $15.2 billion, underscoring the financial stakes.
Ahmad said Pakistan’s financial inclusion rate has reached 71%, while the gender gap has narrowed to 27%.
Green finance rules and women-focused programmes
The governor outlined SBP’s regulatory measures, including the Green Banking Guidelines of 2017 and Environmental and Social Risk Management Framework of 2022.
He also highlighted the Pakistan Green Taxonomy, climate-related financial risk regulations and Climate Stress Testing Guidelines issued in December 2025.
SBP’s published framework says stress testing covers physical and transition risks, helping institutions assess potential effects on lending portfolios and financial positions.
Ahmad highlighted the Asian Development Bank-supported Pakistan Women Inclusive Finance Program. Pakistan also joined the Women Entrepreneurs Finance Code in 2025, with SBP anchoring financial-industry participation.
He linked Pakistan’s work to AFI’s four pillars: Promotion, Provision, Protection and Prevention.
The taxonomy classifies green activities on a scientific basis. Targeted financing channels credit towards underserved groups, while women-focused initiatives strengthen resilience. Climate regulations and stress testing help institutions prepare for shocks.
Pakistan is also sharing its taxonomy and climate risk framework with peer regulators.
Programme targets implementation barriers
Participants will exchange experiences on operationalising green finance, climate-smart agriculture and implementation challenges, including gender barriers.
“The success of any policy framework is ultimately measured by its implementation and its impact on people’s lives,” the Governor said.
AFI’s Aban Haq, Director Strategy, Member Engagement and Evaluation, and World Bank Operations Manager Lasse Melgaard also addressed the opening.
Both stressed sharing innovative country experiences and good practices. Melgaard welcomed the platform for collaboration and implementation learning.
Ahmad thanked AFI and expressed hope for stronger peer networks, lasting institutional links and continued international cooperation on inclusive, climate-resilient finance.
