Pakistan’s Banks Fall Short on Climate Commitments in Financing

News Desk

KARACHI: Major commercial banks in Pakistan are lagging in their sustainability commitments, particularly regarding climate change and biodiversity, according to a new assessment.

The report, titled the 2025 Benchmark of Bank Sustainability Policies in Pakistan, was released by Fair Finance Pakistan (FFP) during the World Bank-IMF Annual Meetings in Bangkok.

The assessment, conducted in collaboration with the Lahore University of Management Sciences (LUMS) and Profundo, evaluated seven banks: Habib Bank Ltd (HBL), United Bank Ltd (UBL), MCB Bank, the National Bank of Pakistan (NBP), Meezan Bank, Allied Bank (ABL), and Standard Chartered Pakistan (SCBPL).

It revealed that only 13.8% of policies related to climate change and 26.8% for biodiversity received positive coverage for borrowers and projects.

In contrast, 75.4% of the policy elements concerning the banks’ own operations scored positively, highlighting a significant disparity.

Standard Chartered Pakistan achieved the highest score for climate change at 3.63 out of 10, followed by Allied Bank at 1.45 and Habib Bank at 1.25.

This limited engagement raises concerns about the banks’ roles in addressing environmental challenges, which could have broader implications for Pakistan’s economy and its commitment to sustainable development.

As the global community increasingly prioritizes climate action, stakeholders are calling for enhanced accountability and transparency from financial institutions.

Upcoming discussions among banking leaders and policymakers may focus on strategies to improve sustainability practices and align financing with environmental goals.