Green Banking Guidelines, introduced by the State Bank of Pakistan (SBP) in 2017, are not mandatory but eventually they will become a policy to be implemented by banks, said SBP Deputy Chief Manager Mohammad Tahir. Speaking at a meeting of Fair Finance Pakistan (FFP), he said that 16 banks were facilitating green business and more initiatives were in the pipeline to promote climate-friendly banking. “There are some limitations and practical realities which the central bank has to take into account for the investment flow,” he said. Speaking on the occasion, FFP official Asim Jaffry said that only 20% of Pakistanis owned a formal bank account and only 5% of them were women. He lamented that micro, small and medium enterprises (MSME) were heavily underfinanced as a huge chunk of lending went to the government and large-scale industry.
Published in The Express Tribune, October 24th, 2021.
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