Pakistan’s financial inclusion hits 71%, says SBP

Pakistan’s financial inclusion rate has increased to 71%, while the gender gap in access to financial services has declined to 27%, State Bank of Pakistan (SBP) Governor Jameel Ahmad said on Tuesday.

He stressed the need to make climate finance more accessible to women, small-scale farmers and small businesses, saying vulnerable communities needed financial support to cope with climate-related challenges.

Addressing the inaugural session of a four-day joint learning programme organised by the SBP and the Alliance for Financial Inclusion (AFI) in Islamabad, Ahmad said financial exclusion and climate change were closely connected. He pointed out that communities most exposed to climate risks often had limited access to insurance, savings and formal financial services.

He said climate finance should not remain limited to environmentally friendly investments. It should also help vulnerable communities prepare for natural disasters, strengthen their financial resilience and adapt to changing environmental conditions.

The programme has brought together 38 representatives of central banks and financial regulators from 24 countries across four continents. Pakistan is hosting the initiative for the first time. It aims to promote knowledge-sharing and help participating countries turn inclusive green finance policies into practical measures.

Highlighting the economic consequences of climate change, Ahmad referred to the devastating floods of 2022. The disaster caused approximately $15 billion in physical damage and another $15 billion in economic losses. More than 30 million people were affected, while around 2.2 million homes were damaged.

The SBP governor said Pakistan was sharing its Green Taxonomy and climate risk management framework with regulators across the AFI network to encourage sustainable financial practices.

He also outlined several initiatives introduced by the central bank to address environmental and social risks in the financial sector. These include the Green Banking Guidelines issued in 2017, the Environmental and Social Risk Management Framework introduced in 2022, Pakistan’s Green Taxonomy and regulations covering climate-related financial risks.

Ahmad also highlighted the Climate Stress Testing Guidelines issued in December 2025, which enable financial institutions to assess their vulnerability to climate-related economic shocks.

Discussing women’s financial empowerment, he referred to the Pakistan Women Inclusive Finance Programme, supported by the Asian Development Bank. He also highlighted Pakistan’s participation in the Women Entrepreneurs Finance Code in 2025, with the SBP serving as the anchor institution for the country’s financial industry.

He said Pakistan’s financial inclusion strategy focused on four key areas: promotion, provision, protection and prevention. These measures aim to encourage environmentally sustainable economic activities, expand financing for underserved communities, improve women’s financial security and prepare financial institutions for climate-related risks.

The programme will also provide an opportunity for participants to exchange experiences on climate-smart agriculture, inclusive green finance and measures to overcome barriers to financial access, particularly for women.

AFI Director of Strategy, Member Engagement and Evaluation Aban Haq and World Bank Operations Manager Lasse Melgaard also addressed the session. They highlighted the importance of international cooperation and sharing expertise to develop financial systems that are both inclusive and environmentally sustainable.