Pakistan’s financial inclusion rate has reached 71 percent, while the gender gap in access to financial services has narrowed to 27 percent, State Bank of Pakistan (SBP) Governor Jameel Ahmad said on Tuesday, highlighting the country’s progress in expanding access to banking and financial services. He emphasized that climate finance must also address the needs of women, smallholder farmers, small businesses and low-income households, particularly those exposed to climate-related risks and facing limited access to formal financial services.
The Governor made these remarks while addressing the inaugural session of a four-day joint learning program organized by the State Bank of Pakistan and the Alliance for Financial Inclusion (AFI) in Islamabad. The program has brought together 38 representatives from central banks and financial regulatory institutions across 24 countries spanning four continents. Held in Pakistan for the first time, the initiative aims to help participating institutions move from policy commitments towards practical implementation of inclusive green finance strategies.
Ahmad said climate change and financial exclusion are closely interconnected, as communities most vulnerable to environmental shocks are often those with the least access to insurance, savings and formal financial services. He stressed that climate finance should not be limited to funding environmentally sustainable investments but should also help communities prepare for risks, strengthen their resilience and adapt to changing climate conditions. The Governor highlighted the importance of ensuring that financial systems provide meaningful support to people whose livelihoods are threatened by climate-related disruptions.
Referring to Pakistan’s experience during the devastating floods of 2022, Ahmad said the disaster caused nearly $15 billion in physical damage and an additional $15 billion in economic losses. The floods affected more than 30 million people and damaged approximately 2.2 million homes, exposing the scale of the country’s vulnerability to climate-related disasters. He said the losses demonstrated the need for financial systems that combine environmental sustainability with inclusive access to financial resources, particularly for communities that face difficulties recovering from economic shocks.
The Governor also highlighted Pakistan’s efforts to strengthen its regulatory framework for sustainable finance and climate risk management. He said the country is sharing its Green Taxonomy and climate risk framework with regulators across the AFI network to support international knowledge exchange and encourage the adoption of effective practices. SBP’s measures include the Green Banking Guidelines introduced in 2017, the Environmental and Social Risk Management Framework issued in 2022, Pakistan’s Green Taxonomy and regulations addressing climate-related financial risks.
Ahmad also referred to the Climate Stress Testing Guidelines issued in December 2025, which help financial institutions assess their exposure to climate-related shocks and evaluate their preparedness for potential disruptions. These measures are intended to strengthen the financial sector’s ability to identify environmental risks and incorporate them into institutional planning and risk management practices.
On women’s financial inclusion, the Governor highlighted the Pakistan Women Inclusive Finance Program, supported by the Asian Development Bank, as part of efforts to improve women’s access to financial services. He also noted that Pakistan joined the Women Entrepreneurs Finance Code in 2025, with SBP serving as the anchor institution for the financial industry. The initiatives aim to expand financial opportunities for women and strengthen their ability to participate in economic activity while improving their financial resilience.
Pakistan’s approach also follows AFI’s four pillars of Promotion, Provision, Protection and Prevention. These measures include identifying environmentally sustainable economic activities, directing financing towards underserved groups, strengthening women’s financial resilience and helping financial institutions prepare for climate-related risks. Participants in the program are expected to exchange experiences on implementing inclusive green finance policies, supporting climate-smart agriculture and addressing barriers to implementation, including gender-related challenges.
AFI Director of Strategy, Member Engagement and Evaluation Aban Haq and World Bank Operations Manager Lasse Melgaard also addressed the inaugural session, emphasizing the importance of international cooperation and knowledge-sharing in advancing inclusive and sustainable finance. The program is expected to strengthen institutional collaboration and help regulators translate policy frameworks into practical initiatives that improve access to finance and support climate resilience across participating countries.
Ahmad said the effectiveness of any policy framework ultimately depends on its implementation and its impact on people’s lives, emphasizing the need for measurable outcomes that benefit vulnerable communities. Pakistan’s participation in the international learning initiative reflects its efforts to connect financial inclusion with climate adaptation, sustainable economic development and broader access to financial services.
Follow the PakBanker Whatsapp Channel for updates across Pakistan’s banking ecosystem.