Karachi, Pakistan, August 29, 2018—IFC,
a member of the World Bank Group, and the State Bank of Pakistan (SBP)
have signed an advisory agreement to support green banking in Pakistan,
part of IFC’s commitment to helping countries transition to green, low
carbon, sustainable economies.
IFC’s advisory services team will assist
the SBP and Pakistan’s banking sector in improving their environmental
risk management practices, and ensuring ethical lending practices. SBP
has already taken an initial step towards this with the issue of its green
banking guidelines last October.
“Green banking is vital to reduce the
vulnerability of the financial sector to environmental risks and provide
financing to make economies more resource-efficient and climate resilient,”
said Nadeem Siddiqui, IFC’s Senior Manager for Pakistan. “Our aim is
to leverage our global experience to assist Pakistan’s State Bank
build the capacity of the banking sector in green banking practices.”
IFC is a global leader in green banking,
providing both advisory and investment support to financial sector regulators
and intermediaries on building their green banking business. Over the last
two decades, IFC has worked on more than 200 projects with 150 financial
institutions in 15 countries, and provided nearly $5.7 billion in financing,
including developing green banking business models and issuing green bonds.
The State Bank of Pakistan is also part
of the IFC-supported Sustainable Banking Network, a global community of
financial sector regulatory agencies and banking associations from emerging
markets committed to advancing sustainable finance in line with international
Pakistan is a priority country for IFC.
Over the last three years, IFC has ramped up its investments and advisory
services work in the country with current investment commitments of $1.2
billion to support the development of Pakistan’s private sector, especially
in power and infrastructure, and boost access to finance for micro, small
and medium enterprises.
IFC—a sister organization of the World
Bank and member of the World Bank Group—is the largest global development
institution focused on the private sector in emerging markets. We work
with more than 2,000 businesses worldwide, using our capital, expertise,
and influence to create markets and opportunities in the toughest areas
of the world. In fiscal year 2018, we delivered more than $23 billion in
long-term financing for developing countries, leveraging the power of the
private sector to end extreme poverty and boost shared prosperity. For
more information, visit www.ifc.org