Pakistan launches Paris-Aligned Finance Fellowship to prepare financial sector against climate risk

KARACHI – Pakistan has launched the Paris-Aligned Finance Fellowship, a landmark initiative designed to equip the nation’s financial sector with the expertise to manage climate risks and capitalise on green investment opportunities.

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), the Fellowship represents a critical step in aligning the country’s financial system with global climate standards.

The program brings together 50 senior professionals from the central bank, commercial banks, development finance institutions, and other regulators. By building their capacity in sustainable finance, the initiative aims to direct more capital toward vital areas such as clean energy, resilient infrastructure, and green exports, thereby strengthening Pakistan’s economic stability and international competitiveness.

“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, at the State Bank of Pakistan.

The Fellowship is a direct response to rapidly evolving global trade and investment rules, where markets increasingly demand lower carbon footprints and robust sustainability practices. It will prepare financial institutions to integrate climate and sustainability considerations into their core operations—from lending and investment to risk management, enabling them to better support businesses navigating this new landscape.

“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 of GIZ Pakistan.

The Fellowship’s curriculum, which begins on October 13, 2025, includes a Foundation Track in Karachi followed by an Expert Track in Germany. The training will cover essential topics such as climate and financial risk management, climate stress tests, transition finance, and sustainability reporting.

A key outcome will be the establishment of a dedicated Community of Practice within Pakistan’s financial sector to continuously advance climate finance. The program is expected to have a long-term impact by embedding sustainable practices into the banking and investment ecosystem, ultimately unlocking financial flows for projects that build resilience and drive sustainable growth.