Pakistan's 2022 floods caused nearly $15bn damage and $15bn losses, governor says
Pakistan's 2022 floods caused physical damage of nearly $15 billion and economic losses of another $15 billion, affected more than 30 million people and damaged 2.2 million homes. State Bank of Pakistan Governor Jameel Ahmad used those figures to argue that climate finance must do more than fund green projects: it must help the people least able to absorb a climate shock.
"Climate change and financial exclusion are deeply interconnected," Ahmad said, inaugurating a four-day joint learning programme on inclusive green finance policy implementation in Islamabad with the Alliance for Financial Inclusion. He said the people most exposed to climate shocks are smallholder farmers, micro and small enterprises, and low-income households, adding that they are also the least likely to have insurance, savings, or access to formal finance. "Climate finance must do more than support green investments. It must also help communities anticipate risks, build resilience, and adapt to a changing climate," he said.
The programme brings 38 international participants from central banks and financial regulators in 24 countries across four continents, aiming to turn policy commitments into implementation. Ahmad said Pakistan is sharing its Green Taxonomy and climate risk framework with peer regulators in the AFI network.
Pakistan's regulatory stack includes Green Banking Guidelines from 2017, an Environmental and Social Risk Management Framework from 2022, the Pakistan Green Taxonomy, climate-related financial risk regulations and Climate Stress Testing Guidelines issued in December 2025. On inclusion, Ahmad said financial inclusion has reached 71% and the gender gap has narrowed to 27%. He cited the Pakistan Women Inclusive Finance Programme, supported by the Asian Development Bank, and Pakistan's 2025 joining of the Women Entrepreneurs Finance Code, with the SBP as anchor institution for the financial industry.
The governor framed the work around the AFI's four pillars of promotion, provision, protection and prevention, with the Green Taxonomy providing a science-based classification of green activities and targeted financing schemes channelling credit to underserved segments.
