KARACHI: Bank Alfalah Limited and British International Investment (BII), the UK’s development finance institution and impact investor, have signed a USD 50 million senior term loan facility to support and scale climate finance in Pakistan.
The timely partnership is critical to building long-term resilience and supporting sustainable economic growth in Pakistan, as the country remains highly vulnerable to climate change, with recurring floods, extreme weather events, and rising climate-related risks. It underscores the urgent need for greater private sector capital to close the financing gap across climate adaptation, resilience and mitigation.
Bank Alfalah will use the facility to expand financing for eligible climate projects in Pakistan that are aligned with a more sustainable and climate-resilient future. This will support local businesses to invest in cleaner, more resilient and sustainable solutions, such as climate-smart agriculture and water irrigation systems. It will also directly support agribusinesses which are amongst the most vulnerable groups impacted by climate change, despite being a key economic contributor. This reflects both parties’ continued focus on supporting Pakistan’s sustainable development priorities.
Alongside the investment, BII will support Bank Alfalah in building a pipeline of eligible climate assets through technical assistance. This will help further strengthen the Bank’s ability to originate and deploy financing towards projects that address both the causes and consequences of climate change.
Atif Bajwa, President and CEO of Bank Alfalah, said, “We are pleased to partner with British International Investment which reinforces Bank Alfalah’s commitment to supporting climate finance in Pakistan and raising international capital towards sectors and businesses that are critical for the country’s sustainable and resilient growth. This partnership also reflects the confidence of a leading global development finance institution in Bank Alfalah’s platform, governance, and ability to deploy capital towards high-impact opportunities.”
Leslie Maasdorp, Chief Executive Officer at British International Investment, said:
“Pakistan is on the frontline of climate change, and increasing access to climate finance is critical to building long-term resilience and supporting sustainable growth. Our investment in Bank Alfalah will help channel much-needed capital to climate mitigation and adaptation projects, as well as the agricultural sector, a vital pillar of the country’s economy. It also reflects our commitment under our new five-year strategy to scale climate finance, including our target of at least 40 per cent of new investments in climate-related opportunities.”
British High Commissioner to Pakistan, Jane Marriott CMG OBE said, “Pakistan is highly vulnerable to climate change, but there is also a real opportunity to attract investment that supports a greener and more resilient future. This partnership between British International Investment and Bank Alfalah shows how the UK and Pakistan can work together to tackle the climate crisis. By helping businesses and farmers invest in climate-smart solutions, we are supporting resilience, economic growth, and communities across the country.”
The transaction further strengthens Bank Alfalah’s role in sustainable finance and builds on its broader efforts to support clients across priority sectors, including renewable energy, energy efficiency, climate adaptation, agribusiness, and other eligible climate-linked activities.