Pakistan’s financial inclusion rate has reached 71%, while the gender gap in access to financial services has narrowed to 27%, State Bank of Pakistan (SBP) Governor Jameel Ahmad has said. He shared the figures while inaugurating a four-day Joint Learning Programme on Inclusive Green Finance Policy Implementation, organised by the SBP and the Alliance for Financial Inclusion (AFI) in Islamabad. The programme brings together 38 participants representing central banks and financial regulators from 24 countries across four continents. It aims to help participating institutions translate policy commitments into practical measures and improve the implementation of inclusive green finance policies. Ahmad said financial inclusion and climate change are closely connected, as communities most exposed to climate-related risks often have limited access to formal financial services, savings and insurance. He called for financial systems that address both environmental challenges and the financial needs of underserved groups.
The SBP governor identified smallholder farmers, micro and small enterprises, women and low-income households among the groups requiring greater access to climate finance. He said these communities are particularly vulnerable to climate shocks but are also less likely to have insurance coverage, savings or access to formal financial services. Ahmad emphasised that climate finance should extend beyond supporting environmentally friendly investments and help communities anticipate risks, build resilience and adapt to changing climate conditions. Referring to Pakistan’s experience during the 2022 floods, he noted that the disaster caused nearly $15 billion in physical damage and another $15 billion in economic losses. More than 30 million people were affected, while approximately 2.2 million homes were damaged. The scale of the losses highlighted the need for financial institutions to consider climate-related risks while ensuring that vulnerable communities can access financial protection and suitable financial products.
Ahmad also outlined the regulatory measures introduced by the SBP to integrate environmental and climate-related considerations into the financial sector. These include the Green Banking Guidelines issued in 2017, the Environmental and Social Risk Management Framework introduced in 2022, Pakistan’s Green Taxonomy and regulations addressing climate-related financial risks. He also referred to the Climate Stress Testing Guidelines issued in December 2025, which are intended to help financial institutions assess their exposure to climate-related shocks. Pakistan is sharing its Green Taxonomy and climate risk framework with peer regulators across the AFI network, providing an opportunity for international knowledge exchange. The governor also highlighted the Pakistan Women Inclusive Finance Programme, supported by the Asian Development Bank, as part of efforts to improve women’s access to financial services. Pakistan joined the Women Entrepreneurs Finance Code in 2025, with the SBP serving as the anchor institution for the financial industry.
The programme is structured around the AFI’s four pillars of Promotion, Provision, Protection and Prevention, which guide efforts to advance inclusive and sustainable finance. These areas include promoting financial inclusion, directing financing towards underserved segments, improving women’s financial resilience and preparing financial institutions to manage climate-related risks. Targeted financing schemes can help channel credit towards groups that face barriers to formal finance, while climate risk regulations and stress testing can support financial institutions in preparing for potential disruptions. Participants are expected to exchange experiences on implementing green finance policies, supporting climate-smart agriculture and addressing barriers linked to gender and access to financial services. AFI representatives and World Bank Operations Manager Lasse Melgaard also highlighted the importance of international cooperation and knowledge-sharing. The initiative reflects the SBP’s focus on connecting financial inclusion with climate resilience, with implementation and measurable benefits for vulnerable communities remaining central to its policy objectives.
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