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KARACHI, Oct 09 (APP):As a significant step toward climate smart banking and investment, Pakistan Thursday launched the Paris-Aligned Finance Fellowship with the core objective of making the financial sector compatible with global climate standards.
By capacity building in sustainable finance and strengthening economic stability and competitiveness, the Fellowship is aimed at assisting Pakistan’s financial system channel more investment into clean energy, resilient infrastructure, and green exports.
The fellowship is financed by the German Federal Ministry for Economic Cooperation and Development (BMZ) and implemented by GIZ Pakistan in collaboration with the State Bank of Pakistan (SBP), said a statement issued here by the central bank.
Program will start from October 13 to 17, 2025 with a Foundation Track in Karachi that will be followed by an Expert Track in Germany while 50 fellows- senior bankers and finance professionals- have been selected for the program through nominations by their institutions.
The Fellowship will bring together senior professionals from the central bank, and commercial banks, development finance institutions, and other regulators.
As the global trade and investment rules are changing fast, with buyers and markets increasingly demanding lower carbon footprints and stronger sustainability standards, the Fellowship will prepare Pakistan’s financial institutions to respond to these shifts by adopting practices that integrate climate and sustainability considerations into lending, investment, and risk management. This will help banks support businesses in meeting new requirements and in seizing opportunities from the global green transition.
“Strengthening the financial sector’s ability to respond to climate challenges is central to ensuring sustainable growth. The State Bank of Pakistan is pleased to support this important initiative,” said Mr. Maraj Mahmood, Managing Director, BSC, State Bank of Pakistan.
“This Fellowship will enable Pakistan’s banks to unlock new opportunities for climate-smart investment while managing risks more effectively. It is about preparing the sector for the future of global finance,” said Ms. Maria-Jose Poddey, Country Director, GIZ Pakistan.
Key features of the Fellowship include a training that covers climate and financial risk management, climate stress tests, transition finance, climate and sustainability reporting and disclosures as well as establishment of a Community of Practice amongst Pakistan’s financial sector to advance climate finance.
The Paris-Aligned Finance Fellowship is expected to create long-term impact by embedding sustainable practices in Pakistan’s banking and investment ecosystem. Its central aim is to unlock climate finance flows by supporting projects and businesses that build resilience, enhance competitiveness, and contribute to sustainable growth.