Pakistan has officially launched the Paris-Aligned Finance Fellowship, a strategic initiative designed to equip its financial sector with the knowledge and tools needed to respond to global climate finance trends. The program, commencing in October 2025, aims to align national banking and investment practices with international climate standards while opening new opportunities for sustainable growth.
The fellowship is financed by the German Federal Ministry for Economic Cooperation and Development and implemented through GIZ Pakistan in partnership with the State Bank of Pakistan. It represents a major step toward building a climate-resilient financial system that can attract green investment, reduce exposure to climate-related risks, and support Pakistan’s transition to a low-carbon economy.
This program brings together senior professionals from the central bank, commercial banks, development finance institutions, and other regulatory bodies. Its core objective is to build capacity in sustainable finance, enabling financial institutions to channel more investment into clean energy, resilient infrastructure, and green exports. In doing so, it strengthens both economic competitiveness and long-term financial stability.
Global trade and investment landscapes are rapidly evolving, with increasing pressure on markets and industries to adopt lower carbon footprints and stricter sustainability standards. Pakistan’s financial institutions must adapt to these shifts to remain competitive. Through the fellowship, participating banks and institutions will integrate climate considerations into their lending, investment, and risk management processes. This will allow them to better support businesses in meeting new regulatory and market requirements while leveraging emerging opportunities in the global green economy.
“Strengthening the financial sector’s ability to respond to climate challenges is central to ensuring sustainable growth. The State Bank of Pakistan is pleased to support this important initiative,” said Maraj Mahmood, Managing Director of Banking Services Corporation at the central bank. He emphasized that climate risk preparedness will be crucial for Pakistan’s financial stability in the years ahead.
“This Fellowship will enable Pakistan’s banks to unlock new opportunities for climate-smart investment while managing risks more effectively. It is about preparing the sector for the future of global finance,” said Maria-Jose Poddey, Country Director of GIZ Pakistan.
The fellowship will officially begin with a Foundation Track from October 13 to 17, 2025, in Karachi, followed by an Expert Track in Germany. Fifty senior bankers and finance professionals, nominated by their institutions, have been selected for the first cohort. Their training will cover climate and financial risk management, climate stress testing, transition finance, sustainability reporting, and climate disclosure standards.
Another core component of the program is the establishment of a Community of Practice, aimed at advancing climate finance collaboration across Pakistan’s financial ecosystem. This network will encourage continuous learning, innovation, and integration of sustainable practices across the banking and investment sectors.
By embedding climate-aligned strategies into financial operations, the Paris-Aligned Finance Fellowship is expected to unlock new flows of climate finance and support projects that enhance economic resilience and sustainability. The program is a critical step in positioning Pakistan’s financial sector to meet future global challenges and seize opportunities created by the green transition.
Follow the PakBanker Whatsapp Channel for updated across Pakistan’s banking ecosystem.