A new study by Mobilink Bank and the Sustainable Development Policy Institute has highlighted the growing financial vulnerability of women farmers in Pakistan, with many women relying on borrowing to manage the effects of climate related shocks while continuing to face limited access to formal financial services. The study points to the need for financial solutions that respond specifically to the climate and economic challenges faced by women working in agriculture. Its findings were presented at a high level policy dialogue jointly hosted by the Sustainable Development Policy Institute and Mobilink Bank in Islamabad, bringing together government representatives, financial regulators, banks, development finance institutions and development partners to discuss how research findings can be translated into practical financial products for women farmers.
The study, titled “Designing Gender Responsive Climate Finance: A Diagnostic Study and Product Framework for Women Farmers in Pakistan,” is based on field research conducted across eight districts in Punjab and Sindh. It identifies a significant gap between women’s contribution to agriculture, their exposure to climate risks and their access to formal financial services. More than nine in ten women farmers surveyed had experienced an extreme climate related event during the previous five years, including heatwaves, flooding, heavy rainfall or drought like conditions. More than 80% of those surveyed reported crop losses or a negative impact on farming. Borrowing emerged among the first or second most common coping strategies across every district covered by the research.
The impact of climate shocks was particularly visible in the findings from Khushab, where every woman who reported using a coping strategy had borrowed money. More than half of these women had also sold livestock, a step that could weaken their future income generating capacity. The findings indicate that climate events can create financial pressure that extends beyond immediate agricultural losses, requiring farming households to rely on borrowing or dispose of productive assets to manage their expenses. The study therefore calls attention to the need for financial products that can help women farmers withstand climate related disruptions without compromising their future sources of income.
Adviser to the Finance Minister, Adnan Pasha, attended the launch as the guest of honour and stressed the importance of formally recognising women farmers as economic actors and contributors to Pakistan’s agricultural economy. He said the government was actively considering policy recommendations emerging from the study and called on financial institutions to develop systems and products designed around women’s requirements. He particularly highlighted barriers involving access to finance, collateral and climate resilience. Pasha also acknowledged the work of the Sustainable Development Policy Institute and Mobilink Bank in advancing women’s financial inclusion and called for greater attention to financial solutions suited to women farmers.
Khowla Shoaib, Head of Strategy, Sustainability and Women Financial Services at Mobilink Bank, said the bank’s commitment to women in agriculture is reflected in its existing portfolio. Agriculture represents approximately 60% of the bank’s total gross loan portfolio, while women account for more than 21%. She said the findings of the Sustainable Development Policy Institute study supported the bank’s existing assessment of the financial and climate related challenges faced by women farmers. According to Shoaib, the research has provided additional insights that have helped strengthen the bank’s current portfolio and inform the development of new gender responsive products designed for women farmers.
The research also highlighted significant structural gaps affecting women’s participation in agriculture and access to assets. According to findings presented by Ayesha Naeem, lead researcher from the Sustainable Development Policy Institute, 67% of Pakistan’s employed women work in agriculture, while only 1.5% of agricultural households are formally recorded as female headed. Land ownership remains particularly limited, with only around 2% of ever married women aged 15 to 49 owning land either alone or jointly. Meanwhile, 97.2% of women surveyed had not inherited land or a house. In Sindh, 99.1% did not own land either individually or jointly, creating an additional barrier for women seeking formal financial services that may depend on land or other assets as collateral.
The financial and digital gender gaps further compound these challenges. The study found that 56% of men have a full service financial account compared with only 14% of women. Mobile wallet ownership also remains considerably lower among women, standing at 11% compared with 48% among men. These differences can restrict women’s ability to access formal financial services, receive funds digitally and use financial products designed around agricultural and climate related needs. The findings suggest that financial exclusion is connected with wider barriers involving asset ownership, mobility and digital access.
The urgency of developing suitable financial solutions is increasing as climate risks intensify. Pakistan’s 2022 floods caused more than $30 billion in damage and economic losses, while an estimated $16.3 billion was required for resilient reconstruction. Dr. Sajid Amin Javed, Deputy Executive Director for Research at the Sustainable Development Policy Institute, said the study’s strength was its focus on climate finance at the micro farmer level. He said the gender perspective was particularly important because a significant share of women involved in agricultural work remains insufficiently recognised. He added that strengthening rural economic activity, particularly agriculture and livestock, is essential for the broader economy and that partnerships with institutions such as Mobilink Bank, which have access to large scale customer data, can support continued research in this area.
Engr. Ubaid Zia, Head of Energy Unit at the Sustainable Development Policy Institute, said the study addressed gaps in the existing financial approach towards women farmers. He said women are carrying out agricultural work, absorbing climate related shocks and already relying on borrowing to cope, while the formal financial system does not adequately reflect their circumstances. He described the issue as particularly significant for a country facing substantial climate vulnerability and said the exclusion is structural, with financial products often designed around land ownership, individual mobility and digital access. The study therefore calls for a shift towards financial products and systems that better reflect the realities of women farmers and support their ability to withstand climate shocks while maintaining agricultural livelihoods.
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