Pakistani banks receive low ratings in human rights policies
Pakistani banks have achieved favorable scores for their
anti-corruption measures but have fared poorly in the realm of human rights
policies, as per a policy evaluation conducted by Fair Finance Pakistan. This
organization is a coalition comprising civil society entities, think tanks, and
advocacy groups, aiming to bolster the financial industry's commitment to
environmental, social, and human rights standards.
The assessment was based on publicly available policies
related to human rights and corruption disclosed by five leading commercial
banks: Habib Bank Ltd, MCB Bank Ltd, Meezan Bank Ltd, Allied Bank Ltd, and
National Bank of Pakistan Ltd.
Pakistan
sees increase in financial inclusion
The banks were evaluated on a scale ranging from zero to 10,
with zero being the least favorable score. The evaluation followed the
methodology of Fair Finance Guide International (FFGI), which assesses
adherence to international standards for responsible business practices and has
been implemented in over 20 countries spanning Asia, Africa, Latin America, and
Europe.
Habib Bank Ltd achieved the highest average score of 4.2 out
of 10, followed by MCB Bank Ltd at 3.3. Meanwhile, Meezan Bank Ltd, Allied Bank
Ltd, and National Bank of Pakistan Ltd averaged 2.5. The results reveal that
all five banks have well-defined policies for reporting bribery and
implementing anti-money laundering measures. With the exception of Allied Bank
Ltd, all banks have established mechanisms to verify the ultimate beneficial
owner(s) of the companies they fund.
Habib Bank Ltd particularly distinguished itself among the
assessed banks by implementing specific safeguards when dealing with
politically exposed individuals, whether through direct or indirect business
relationships.
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However, none of the banks provided any disclosures related
to the companies they invest in or finance, which could expose them to various
environmental, social, and governance risks.
Regarding human rights policies, Habib Bank Ltd received an average
score of 0.7 out of 10, followed by MCB Bank Ltd. On the other hand, Allied
Bank Ltd, National Bank of Pakistan Ltd, and Meezan Bank Ltd scored almost
negligible ratings.
The assessment revealed that the banks do not fully align
with the United Nations Guiding Principles on Business and Human Rights.
However, four of the five banks, excluding Meezan Bank Ltd, have declared a
zero-tolerance policy towards discrimination in employment and occupation. The
policies of Allied Bank Ltd and National Bank of Pakistan Ltd were found to be
lacking in addressing all aspects of gender, race, ethnicity, and physical
ability. Notably, none of the banks has disclosed information pertaining to
human rights policies related to the companies they invest in or finance.
Source: Dawn