ISLAMABAD: Pakistan has launched a groundbreaking initiative to align its financial sector with global climate goals through the Paris-Aligned Finance Fellowship that is set to begin in mid-October, the country’s central bank said on Thursday.
The program, financed by the German Federal Ministry for Economic Cooperation and Development (BMZ) and implemented by GIZ Pakistan in collaboration with the State Bank of Pakistan (SBP), aims to build the capacity of financial institutions to manage climate risks and unlock green investment.
As global trade and investment increasingly demand low-carbon and sustainable practices, the fellowship positions Pakistan’s financial sector to support businesses in adapting to changing market requirements. By embedding climate and sustainability principles into financial strategies, the initiative is expected to promote economic resilience and competitiveness.
A key outcome of the fellowship will be the creation of a community of practice among financial institutions to collaborate on advancing climate finance in Pakistan. Organizers hope the program will catalyze long-term changes in banking and investment practices, supporting projects that enhance climate resilience, foster green exports, and contribute to sustainable growth.
“Strengthening the financial sector’s ability to respond to climate challenges is central to ensuring sustainable growth,” Maraj Mahmood, managing director of the SBP’s Banking Services Corporation, was quoted as saying by the central bank.
“The State Bank of Pakistan is pleased to support this important initiative.”
Pakistan, which ranks among nations most vulnerable to climate change, has seen erratic changes in its weather patterns which have led to frequent heat waves, untimely rains, storms, cyclones, floods and droughts in recent years. As monsoon floods killed 1,037 and caused initial losses worth $1.31 billion, experts have warned that without urgent adaptation and mitigation measures, the human and economic toll of climate change will only deepen in the years ahead.
The fellowship brings together 50 senior professionals from the central bank, commercial banks, development finance institutions, and regulatory bodies, who will undergo specialized training in sustainable finance, focusing on climate risk management, transition finance, sustainability reporting and green lending practices, according to the SBP.
The program kicks off with a Foundation Track in Karachi on October 13–17, followed by an Expert Track in Germany, providing fellows with international exposure and advanced tools to integrate climate considerations into financial decision-making.
“This fellowship will enable Pakistan’s banks to unlock new opportunities for climate-smart investment while managing risks more effectively,” Maria-Jose Poddey, the GIZ Pakistan country director, was quoted as saying by the SBP.
“It is about preparing the sector for the future of global finance.”
