Key Takeaways
- Bank Alfalah Limited and British International Investment (BII) signed a USD50 million loan facility.
- The agreement aims to support climate finance in Pakistan, particularly in agriculture.
- This partnership is crucial for building long-term resilience against climate change.
Bank Alfalah Limited and the UK’s development finance institution, British International Investment (BII), have signed a USD50 million senior term loan facility to support and scale climate finance in Pakistan. The agreement was formalized during London Climate Action Week on June 26th, 2023.
Atif Bajwa, President and CEO of Bank Alfalah, expressed satisfaction with the partnership, stating: 'This reinforces our commitment to supporting climate finance in Pakistan and raising international capital towards sectors critical for sustainable growth.'
Leslie Maasdorp, CEO of BII, highlighted the urgency of this investment, saying: '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.'
The timely partnership 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.
Specifically, this funding 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 benefit agribusinesses, which are amongst the most vulnerable groups impacted by climate change despite being a key economic contributor.
Alongside the investment, BII will provide technical assistance to Bank Alfalah in building a pipeline of eligible climate assets. This support aims to strengthen the bank’s ability to originate and deploy financing towards projects that address both the causes and consequences of climate change.
Jane Marriott, British High Commissioner to Pakistan, emphasized: 'This partnership between British International Investment and Bank Alfalah shows how the UK and Pakistan can work together to tackle the climate crisis.'
The agreement reflects both parties’ continued focus on supporting Pakistan’s sustainable development priorities. It is a significant step towards ensuring that the country remains resilient against the adverse impacts of climate change, while also fostering economic growth through sustainable practices.
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.
Atif Bajwa, President and CEO of Bank Alfalah
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.
Leslie Maasdorp, Chief Executive Officer at British International Investment
This partnership between British International Investment and Bank Alfalah shows how the UK and Pakistan can work together to tackle the climate crisis.
Jane Marriott CMG OBE, British High Commissioner to Pakistan
