Pakistan is among the countries most vulnerable to climate change, facing increasingly frequent floods, extreme weather events and growing pressures on communities, businesses and livelihoods. Increasing access to climate finance will be critical to helping the country build resilience, strengthen sustainable growth and support sectors most exposed to climate-related risks.
As part of this effort, we have committed a $50 million financing facility to Bank Alfalah, one of Pakistan’s leading commercial banks. The financing will support the expansion of climate finance across Pakistan, helping channel capital towards projects that contribute to climate mitigation and adaptation.
The facility will enable Bank Alfalah to increase financing for eligible climate-focused investments, including climate-smart agriculture and water irrigation systems. Agriculture remains a critical sector for the country’s economy and is particularly vulnerable to the impacts of climate change. By improving access to funding for sustainable and resilient solutions, the partnership will help local businesses strengthen their operations while supporting Pakistan’s broader climate objectives.
Alongside the investment, we will provide technical assistance to support Bank Alfalah to identify and develop a pipeline of climate assets. This will strengthen the bank’s ability to originate and deploy financing towards projects that address both the causes and consequences of climate change.
Leslie Maasdorp, Chief Executive of BII, said: “Pakistan is on the frontline of climate change, and increasing access to climate finance is critical to building long-term resilience and supporting sustainable growth. Our investment in Bank Alfalah will help channel much-needed capital to climate mitigation and adaptation projects, as well as the agricultural sector, a vital pillar of the country’s economy. It also reflects our commitment under our new five-year strategy to scale climate finance, including our target of at least 40 per cent of new investments in climate-related opportunities.”
British High Commissioner to Pakistan, Jane Marriott CMG OBE said: “Pakistan is highly vulnerable to climate change, but there is also a real opportunity to attract investment that supports a greener and more resilient future. This partnership between British International Investment and Bank Alfalah shows how the UK and Pakistan can work together to tackle the climate crisis. By helping businesses and farmers invest in climate-smart solutions, we are supporting resilience, economic growth, and communities across the country.”
Atif Bajwa, President and CEO of Bank Alfalah, said: “We are pleased to partner with BII which reinforces Bank Alfalah’s commitment to supporting climate finance in Pakistan and raising international capital towards sectors and businesses that are critical for the country’s sustainable and resilient growth. This partnership also reflects the confidence of a leading global development finance institution in Bank Alfalah’s platform, governance, and ability to deploy capital towards high-impact opportunities.”
