InfraZamin Pakistan, the country’s leading credit enhancement guarantor, hosted a high-level seminar on “Enabling Green Financing and Green Bonds via Credit Enhancement Solutions” in Karachi in collaboration with the State Bank of Pakistan (SBP), the Pakistan Banks’ Association (PBA), and the Private Infrastructure Development Group (PIDG).
The event attracted key officials from the SBP and Ministry of Finance, along with CEOs and investment heads from major commercial banks, all of whom gathered to discuss the role of green financing—particularly green bonds—in driving Pakistan’s sustainable economic growth.
The seminar provided a platform for influential speakers to share insights on how to foster green financing and accelerate climate-resilient investments in the country. Notable figures included Jameel Ahmed, Governor of SBP; Muneer Kamal, CEO of PBA; Maheen Rahman, CEO of InfraZamin Pakistan; and Philip Skinner, Head of the Middle East, North Africa, and Pakistan at GuarantCo, part of the PIDG.
In his address, Jameel Ahmed, Governor of SBP, emphasized the central role of the central bank in creating a supportive environment for climate resilience. He outlined SBP’s ongoing efforts to promote green financing, including the introduction of refinancing schemes for renewable energy projects. “By June 2024, SBP had disbursed Rs. 94.7 billion, funding over 4,500 renewable energy projects, generating a cumulative 2,061 MW of power,” Ahmed said. He also pointed to the upcoming development of a comprehensive Green Taxonomy with the World Bank, which aims to standardize the classification of green and transitional activities in Pakistan.
Maheen Rahman, CEO of InfraZamin Pakistan, stressed the importance of private sector involvement in the green financing ecosystem. “To unlock the full potential of green financing, we must bring the private sector on board alongside government and regulatory bodies,” she noted. “At InfraZamin, our mission is to bridge financing gaps by offering credit enhancement solutions that mitigate investment risks and enable the private sector to support green bond issuance and sustainable projects.”
In a similar vein, Muneer Kamal, CEO of the Pakistan Banks’ Association (PBA), underscored the urgent need for sustainable finance in Pakistan, a country highly vulnerable to climate change. “Sustainable finance is not merely an option—it’s a responsibility we must embrace. PBA is committed to driving investments toward a low-carbon economy and supporting green financing solutions,” Kamal stated. “Multistakeholder partnerships like this one are key to transforming the financial sector and ensuring economic progress that aligns with environmental sustainability.”
The seminar also featured a series of in-depth discussions on the frameworks and initiatives required to advance green finance in Pakistan. Key topics included the ongoing efforts by the SBP to develop a green taxonomy that will help identify and support green projects, as well as the SBP’s Green Banking Guidelines designed to promote sustainable finance practices across regulated entities.
Drawing from the experiences of other emerging markets, speakers discussed strategies to reduce the costs and risks associated with green financing and incentivize private sector participation. Philip Skinner, Head of MENA and Pakistan at GuarantCo, shared insights from global markets, stating, “With the right support, the private sector can lead the way in developing markets for green, social, and sustainability bonds. We’ve seen firsthand how the barriers to entry are lower than expected, and the potential societal benefits of responding to the climate change challenge are enormous.”
The seminar also explored practical solutions to support issuers in adopting green financing, with PIDG suggesting grants to help cover the costs of global certifications. InfraZamin highlighted the role of credit enhancements in reducing balance sheet burdens for issuers, thereby lowering the investment risk for investors.
The event marked a key milestone for InfraZamin Pakistan and its partners as they continue their efforts to foster green financing and support environmental sustainability in Pakistan’s financial sector. Through these collaborative initiatives, the partners aim to create a robust platform for green bonds and financing solutions that will accelerate Pakistan’s transition to a low-carbon economy.