SBP Governor Urges Climate Finance to Shield Vulnerable Communities

News Desk

KARACHI: State Bank of Pakistan (SBP) Governor Jameel Ahmad emphasized the critical link between climate change and financial exclusion during the opening session of a four-day joint learning program in Islamabad on Tuesday.

He highlighted that the most vulnerable communities, including smallholder farmers and low-income households, often lack access to essential financial protections.

Ahmad pointed out that these groups are disproportionately affected by climate shocks, yet they are the least likely to have insurance or savings.

He stressed that climate finance should extend beyond merely supporting green investments, advocating for initiatives that help communities anticipate risks, build resilience, and adapt to the impacts of climate change.

Reflecting on the devastating floods of 2022, which resulted in approximately $15 billion in physical damage and an equal amount in economic losses,

Ahmad noted that over 30 million people were affected, with 2.2 million homes damaged. This stark reality underscores the urgent need for targeted financial solutions to protect these communities.

As financial inclusion in Pakistan reaches 71%, with a narrowing gender gap of 27%, the SBP is also sharing its Green Taxonomy and climate risk framework with regulators across the Alliance for Financial Inclusion network.

This initiative aims to enhance collaboration and develop comprehensive strategies to address climate-related financial challenges.