The impact of climate-related events, in combination with environmental degradation and air pollution, is expected to reduce Pakistan’s gross domestic product (GDP) by 18%–20% by 2050 (World Bank 2022a). There is momentum for climate action with the launch of several policies, including the National Climate Change Policy and Action Plan 2021. The State Bank of Pakistan, for its part, has introduced the Green Banking Guidelines together with green finance incentives.
On their own, some financial institutions also offer finance renewable energy projects and other types of green finance to micro, small, and medium-sized enterprises (MSMEs).
However, women-owned businesses that need financing to develop and scale up green initiatives face significant barriers to access. Increasing women’s economic participation in countries with very low gender parity such as Pakistan could add some 60% to GDP, according to projections (Ostry et al. 2018). Better access to financing for women business owners presents opportunities for green growth, as they are more likely to consider climate factors when making business decisions (Women’s World Banking 2020).
