KARACHI: Climate change and financial exclusion are deeply interconnected, with the most vulnerable communities often having the least access to financial protection, State Bank of Pakistan (SBP) Governor Jameel Ahmad said on Tuesday.
Addressing the inaugural session of a four-day joint learning programme organised by the SBP and the Alliance for Financial Inclusion (AFI) in Islamabad, he said smallholder farmers, micro and small enterprises, and low-income households were most exposed to climate shocks but least likely to have insurance, savings or access to formal finance.
He stressed that climate finance must go beyond supporting green investments to help communities anticipate risks, build resilience and adapt to climate change.
Referring to the floods in 2022, Mr Ahmad said they caused nearly $15 billion in physical damage and another $15bn in economic losses, affecting more than 30 million people and damaging 2.2 million homes.
He said financial inclusion in Pakistan had reached 71 per cent, while the gender gap had narrowed to 27pc. The country was also sharing its Green Taxonomy and climate risk framework with regulators across the AFI network.
