Financial inclusion rises to 71%, gender gap narrows to 27%, SBP says

Pakistan's financial inclusion rate has risen to 71% and the gender gap in access to financial services has narrowed to 27%, State Bank of Pakistan Governor Jameel Ahmad said at the opening session of a four-day SBP and Alliance for Financial Inclusion (AFI) programme in Islamabad on Tuesday.

Ahmad said climate finance had to reach the people least able to absorb climate shocks: women, smallholder farmers and small businesses. Communities most exposed to climate risk were the least likely to hold insurance, savings or any formal financial service, he said, and financial exclusion and climate change were closely connected.

Climate finance should not be confined to environmentally friendly investments, he said. It should also help vulnerable communities prepare for natural disasters, build financial resilience and adapt to changing conditions.

The programme has brought together 38 representatives of central banks and financial regulators from 24 countries across four continents. Pakistan is hosting it for the first time. Participants will exchange experience on climate-smart agriculture, inclusive green finance and ways to remove barriers to financial access, particularly for women.

Ahmad put the cost of the 2022 floods at about $15 billion in physical damage and a further $15 billion in economic losses. More than 30 million people were affected and about 2.2 million homes were damaged.

He said the SBP was sharing Pakistan's Green Taxonomy and its climate risk management framework with regulators across the AFI network. The central bank's measures include Green Banking Guidelines issued in 2017, an Environmental and Social Risk Management Framework introduced in 2022, the Green Taxonomy and regulations covering climate-related financial risks. Climate Stress Testing Guidelines issued in December 2025 allow financial institutions to assess their vulnerability to climate-related economic shocks.

On women's financial inclusion, he cited the Asian Development Bank-supported Pakistan Women Inclusive Finance Programme and Pakistan's participation in the Women Entrepreneurs Finance Code in 2025, with the SBP as anchor institution for the country's financial industry.

He described the national inclusion strategy as resting on four areas: promotion, provision, protection and prevention. He said these were meant to encourage environmentally sustainable economic activity, widen financing for underserved communities, improve women's financial security and prepare financial institutions for climate-related risks.

AFI Director of Strategy, Member Engagement and Evaluation Aban Haq and World Bank Operations Manager Lasse Melgaard also addressed the opening session. Both stressed international cooperation and the sharing of expertise to build financial systems that are inclusive and environmentally sustainable.