Mobilink Bank, Pakistan’s top digital microfinance bank, has unveiled a groundbreaking Climate Shock Insurance product aimed at protecting small and medium-scale farmers and livestock owners from the escalating risks posed by climate change. This innovative insurance offering is designed to provide financial security to the agricultural sector, which is particularly vulnerable to climate-related catastrophes such as extreme weather events, diseases, and natural disasters.
The Climate Shock Insurance is embedded within Mobilink Bank’s Agri-Lending and Livestock financial products, offering streamlined access to much-needed protection. Unlike traditional disaster relief methods that often come with delays, this insurance initiative promises to deliver quick payouts to farmers who suffer losses due to climate-induced incidents. In doing so, the bank aims to mitigate the impact of unpredictable weather events on farmers’ livelihoods, helping them maintain financial stability even during challenging times.
Pakistan’s agricultural sector is the backbone of the nation’s economy, employing over 40% of the workforce. However, it is also increasingly threatened by climate change, with projections suggesting that productivity could decline by 8% to 10% by 2040. In this context, Mobilink Bank’s new insurance product is timely, providing a critical safety net for farmers whose crops or livestock might be affected by severe weather, droughts, heavy rainfall, or plant diseases. The product covers key crops such as wheat and rice, while also offering protection for livestock against natural disasters and diseases.
Atta-ur-Rehman, Chief Business Officer of Mobilink Bank, highlighted the pressing need for such a solution, noting, “The climate crisis is no longer a distant threat — it is a pressing reality for the borrowers in our crop and livestock portfolio. We strive to provide them with peace of mind, knowing they are financially protected against climate-related disasters, ensuring the survival of their crops and livestock.” He further emphasized that the Climate Shock Insurance aligns with the bank’s broader mission to support rural communities, particularly those most vulnerable to climate risks.
This initiative is also part of Mobilink Bank’s commitment to Environmental, Social, and Governance (ESG) principles. By promoting resilience and sustainability in Pakistan’s agriculture sector, the bank is not only offering financial protection but also reinforcing its dedication to long-term sustainable development. Mobilink Bank’s ESG-focused initiatives are a cornerstone of its strategy to empower rural communities and support Pakistan’s agricultural workforce, which is essential to the nation’s food security and economic growth.
The Climate Shock Insurance is backed by partnerships with leading insurance providers, ensuring that farmers and livestock owners have access to reliable, climate-specific insurance solutions. These partnerships enable Mobilink Bank to offer robust and flexible insurance options tailored to the unique needs of Pakistan’s agricultural sector.
Mobilink Bank is part of the VEON group, a global digital operator with a presence in six dynamic markets, serving nearly 160 million customers. VEON’s global reach and expertise in providing converged connectivity and digital services further strengthen Mobilink Bank’s ability to introduce future-forward financial products like Climate Shock Insurance. This initiative is a key milestone in the bank’s ongoing efforts to deliver sustainable, customer-centric solutions that not only protect but also empower Pakistan’s small-scale farmers and livestock owners.
As climate change continues to challenge traditional farming methods and threaten agricultural productivity, Mobilink Bank’s Climate Shock Insurance is poised to become a crucial tool for safeguarding the livelihoods of farmers and livestock owners across Pakistan. Through this product, the bank reaffirms its role as a trusted financial partner committed to driving positive change in the communities it serves.