Pakistan to equip financial sector to work in green finance
Pakistan has introduced the Paris-Aligned
Finance Fellowship, a pioneering initiative designed to equip the country’s
financial sector with the tools and knowledge to address climate-related risks
and seize emerging opportunities in green finance.
The Fellowship—funded by the German
Federal Ministry for Economic Cooperation and Development (BMZ) and implemented
by GIZ Pakistan in partnership with the State Bank of Pakistan (SBP)—marks a
major milestone in aligning Pakistan’s financial architecture with
international climate commitments.
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Bringing together 50 senior professionals from the SBP, commercial banks, development finance institutions, and other regulatory bodies, the program focuses on strengthening institutional capacity in sustainable finance. Its goal is to channel more investment toward clean energy, climate-resilient infrastructure, and green exports, thereby enhancing both economic stability and global competitiveness.
“Enhancing the financial sector’s
capacity to address climate risks is vital for sustainable growth. The State
Bank of Pakistan is proud to support this strategic initiative,” said Mr. Maraj
Mahmood, Managing Director, BSC, at the SBP.
The Fellowship also responds to
shifting global trade and investment norms that increasingly prioritize low-carbon
operations and sustainability standards. Participants will learn to integrate
climate and environmental factors into lending, investment, and risk management
frameworks—helping financial institutions future-proof their operations and
support businesses in adapting to the green transition.
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“This Fellowship will help Pakistan’s banks unlock new opportunities for climate-smart investment while strengthening risk management,” said Ms. Maria-Jose Poddey, Country Director of GIZ Pakistan. “It’s about preparing the financial sector for the future of global finance.”
Launching on October 13, 2025, the
Fellowship features a Foundation Track in Karachi followed by an Expert Track
in Germany. The curriculum covers key topics including climate risk management,
climate stress testing, transition finance, and sustainability reporting.
A major outcome of the initiative
will be the creation of a Community of Practice within Pakistan’s financial
ecosystem to foster continuous knowledge exchange on climate finance. Over
time, the program is expected to embed sustainable principles across the
banking sector, mobilizing long-term investment for climate resilience and
sustainable growth.
Source: Profit Pakistan