Islamabad, Pakistan – Taking a major step toward promoting sustainable finance, InfraZamin Pakistan, the nation’s leading credit enhancement guarantor, recently hosted a seminar focused on green financing. In collaboration with the State Bank of Pakistan (SBP), Pakistan Banks’ Association (PBA), and the Private Infrastructure Development Group (PIDG), the event, titled “Enabling Green Financing and Green Bonds via Credit Enhancement Solutions,” convened key financial leaders to discuss how green financing and green bonds can stimulate sustainable economic growth in Pakistan.
Attendees included prominent figures like Jameel Ahmed, Governor of SBP; Muneer Kamal, CEO of the PBA; Maheen Rahman, CEO of InfraZamin Pakistan; and Philip Skinner, Head of MENA and Pakistan at GuarantCo and Origination Lead for Nature at PIDG. They were joined by representatives from the Ministry of Finance and senior executives from leading banks in Pakistan.
SBP’s Commitment to Climate Resilience
SBP Governor Jameel Ahmed highlighted the central bank’s dedication to fostering a supportive environment for green finance. He explained that SBP has rolled out several initiatives, such as renewable energy refinancing schemes, which have disbursed PKR 94.7 billion to support over 4,500 projects with a total generation capacity of nearly 2,061 MW by June 2024. Additionally, he discussed SBP’s guidelines for green banking, which help financial institutions manage environmental risks, and the upcoming Green Taxonomy, developed with the World Bank, to standardize green activities in Pakistan.
InfraZamin’s Role in Mobilizing Private Sector for Green Finance
InfraZamin CEO Maheen Rahman emphasized the essential role of private sector engagement in green finance, stressing that collaborative efforts between the government, regulatory bodies, and private enterprises are critical to advancing sustainable finance. She highlighted InfraZamin’s mission to bridge financing gaps with credit enhancement tools, reducing investment risks and facilitating support for green bonds and sustainable projects.
PBA’s Pledge to Sustainable Finance
Muneer Kamal, CEO of the PBA, reinforced the banking sector’s responsibility to embrace sustainable finance, especially as Pakistan faces increasing climate risks. He reiterated PBA’s commitment to green finance and collaborative efforts that drive investments toward a low-carbon economy, underlining that sustainable finance is essential, not optional.
Forging a Framework for Green Financing
Discussions at the seminar focused on building robust frameworks, such as SBP’s Green Banking Guidelines and the upcoming Green Taxonomy, to support green finance. Speakers outlined ways to incentivize green projects, reduce costs, and de-risk investments to boost private sector involvement. They also highlighted capacity-building efforts to enable more players to adapt to the evolving landscape of sustainable investment.
PIDG and InfraZamin’s Practical Solutions for Green Bonds
The event featured practical recommendations from PIDG and InfraZamin. PIDG suggested offering grants to cover certification costs for green projects, while InfraZamin stressed the value of credit enhancement tools to ease balance sheet pressures on issuers and attract more investors to green projects.
Philip Skinner of GuarantCo noted the private sector’s role in advancing certified green, social, and sustainability bonds, citing examples from Bangladesh, Vietnam, Cambodia, Kenya, and Zambia. He highlighted that the barriers to entry are often lower than perceived, showcasing the potential of green bonds to create lasting societal benefits.
New Momentum in Pakistan’s Sustainable Finance Sector
This seminar marked a significant milestone for InfraZamin Pakistan and its partners in promoting green finance. Through credit enhancement solutions and private investment, InfraZamin and its collaborators aim to accelerate Pakistan’s transition to a low-carbon, sustainable economy.
