KARACHI: Amid pressing climate change challenges and growing concerns over energy sustainability, the Indus Consortium hosted an event titled ‘Banking on Renewables’ on Wednesday in Karachi.
The gathering brought together key stakeholders, including banking professionals, civil society organisations (CSOs), environmental experts, and community representatives, to discuss sustainable financing practices and energy transition strategies.
The event highlighted the critical role of financial institutions in mitigating environmental risks and promoting low-carbon economic growth. It explored the State Bank of Pakistan’s (SBP) initiatives, such as the Green Banking Guidelines (GBGs), Environmental and Social Risk Management (ESRM) frameworks, and Green Taxonomy. However, speakers emphasised the need to overcome implementation barriers, including a lack of technical expertise and inconsistent compliance across the banking sector.
Liaqat Ali, chairperson of the Indus Consortium, inaugurated the event with opening remarks, stressing the importance of fostering public-private partnerships to advance renewable energy solutions. He urged financial institutions to actively support Pakistan’s growing solar energy sector, highlighting its potential to reduce reliance on fossil fuels.
The first session focused on sustainable finance. Panellists included Deputy Director of the SME Housing & Sustainable Finance Department, SBP Zarak Khan; Head of ESG at United Bank Limited Rashid Azeem; EVP/Head of Risk Management Division & Chief Green Banking Officer at Sindh Bank Ltd Sadia Bukhari; Head of Operational Risk & Green Banking at Soneri Bank Ltd Wajih Zaman; Director of Programs at Renewable First Muhammad Mustafa Amjad; Research Fellow at the Sustainable Development Policy Institute Dr Khalid Waleed; and former chairperson of the Department of Economics and Management Sciences at NED University of Engineering and Technology Dr Raza Ali Khan.
The discussion centred on strategies for improving ESRM implementation. Panellists noted that while progress on implementing the Green Banking Guidelines has been slow, developments in the Green Taxonomy framework are expected to accelerate in the coming days. They also pointed out challenges in implementation, as private banks have yet to establish their own guidelines.
Environmental experts stressed the importance of engaging communities and CSOs to ensure equitable access to green financing. The second session featured the launch of two significant research studies. Dr Aamir Jahan Khan from IBA Karachi presented findings on the socio-economic and environmental impacts of Pakistan’s expanding LNG sector.
Dr Majid Ali from NUST shared insights into the politico-economic challenges facing the country’s gas sector. Both studies highlighted the environmental degradation and socio-economic risks faced by coastal communities due to LNG infrastructure development.