Banks Pledge to Finance Green Initiatives and SMEs

The banking industry in Pakistan has expressed its commitment to financing green initiatives electric vehicles, energy-efficient homes, and small and medium enterprises (SMEs). This pledge comes amid the government’s push for greater financial inclusion and sustainable development.

The decision was made at a recent meeting chaired by Finance Minister Muhammad Aurangzeb. The banking industry emphasized the need for better data availability to enhance consumer scorecards, enabling them to make informed lending decisions. To facilitate this, the banking sector has sought support from utility companies, including gas, electricity, and telecom providers.

Governor State Bank of Pakistan Jameel Ahmed and representatives from the Pakistan Banking Association (PBA), led by Chairman Zafar Masud, were also present at the meeting.

Masud outlined several green initiatives planned by the PBA to create a more inclusive and sustainable financial ecosystem. These initiatives include:

• Electronic Warehouse Receipt Finance: This will help businesses to use their inventory as collateral for loans.
• SME Index: This will provide a standardized framework for assessing the creditworthiness of SMEs.
• Corporate Farming Financing: This will support the agricultural sector by providing financing to corporate farms.
• Venture Capital Fund for Fintechs: This will foster innovation and growth in the fintech industry.
• Revival of Agri Cooperatives: This will empower farmers and improve agricultural productivity.
• Establishment of Financial Data Exchange: This will facilitate the sharing of financial data, enabling better decision-making.

By implementing these initiatives, the banking industry aims to contribute to the country’s economic growth and sustainability.