State Bank of Pakistan governor calls for inclusive green finance focused on women, farmers and small businesses

State Bank of Pakistan (SBP) Governor Jameel Ahmad emphasized that green finance must address financial exclusion and help vulnerable communities prepare for climate shocks, not just fund green investments. Speaking at the opening of a joint learning program with the Alliance for Financial Inclusion in Islamabad, he highlighted smallholder farmers, micro and small enterprises, and low-income households as particularly exposed to climate risks while lacking access to insurance, savings and formal finance. Reviewing Pakistan’s existing policy framework, Ahmad highlighted the Pakistan Green Taxonomy, which classifies green activities, and targeted financing schemes that channel credit to underserved groups. Regulations on climate risks and the Climate Stress Testing Guidelines issued in December 2025 help financial institutions prepare for potential shocks. These measures link the identification and financing of green activities with the management of financial risks from climate change. Support for women includes the Pakistan Women Inclusive Finance Program, backed by the Asian Development Bank. Pakistan also joined the Women Entrepreneurs Finance Code in 2025, with SBP serving as the financial industry’s anchor institution. Ahmad reported that financial inclusion had reached 71% and the gender gap had narrowed to 27%. The learning program will address practical implementation, including finance for agriculture adapted to climate change and barriers affecting women.