By Maha Qasim
MUCH of the country was submerged in the monsoon-induced floods of 2011, and again in 2022 — and with them, so was the illusion that climate change was a distant threat. The IMF estimates the joint economic cost of these disasters at $58 billion. In May 2025, the IMF approved an additional $1.4bn under the Resilience and Sustainability Facility to enable Pakistan to enhance economic resilience against climate vulnerabilities and natural disasters. To meet IMF conditions, Pakistan must show tangible commitment towards building a climate-resilient economy.
The State Bank of Pakistan (SBP) requires banks and financial institutions to reduce exposure to environmental and social risks and incentivise green practices to safeguard themselves and their clients against climate disasters. The 2017 Green Banking Guidelines encouraged banks and financial institutions to manage environmental and social risks associated with their operations and financing activities. The 2022 Environmental and Social Risk Management Imp