British High Commissioner Jane Marriott on Monday welcomed the signing of a $50 million climate finance facility between British International Investment (BII) and Bank Alfalah, describing it as an important example of how the United Kingdom and Pakistan can work together to tackle climate change while promoting sustainable economic development.
Details of the Agreement
The $50 million senior term loan facility was signed at BII’s headquarters during London Climate Action Week by Bank Alfalah President and Chief Executive Officer Atif Bajwa and BII Chief Executive Officer Leslie Maasdorp in the presence of the British high commissioner.
Marriott said Pakistan remains highly vulnerable to climate change but also has significant potential to attract investment that supports a greener and more climate-resilient future. She noted that the partnership demonstrates the shared commitment of the UK and Pakistan to addressing the climate crisis through sustainable investment.
Utilisation of the Facility
Under the agreement, Bank Alfalah will utilise the financing facility to expand lending for eligible climate-related projects across Pakistan, helping businesses invest in cleaner technologies and sustainable solutions, including climate-smart agriculture and efficient water irrigation systems.
The initiative is also expected to provide direct support to Pakistan’s agricultural sector, one of the country’s largest economic contributors and among the most vulnerable to the impacts of climate change. The financing aims to help bridge the investment gap in climate adaptation, mitigation and resilience while contributing to Pakistan’s long-term sustainable development goals.
Technical Assistance
Alongside the investment, British International Investment will provide technical assistance to strengthen Bank Alfalah’s capacity to identify, develop and finance climate-focused projects, enabling greater deployment of capital towards initiatives that address both the causes and consequences of climate change.
Statements from Leaders
Atif Bajwa said the partnership reinforces Bank Alfalah’s commitment to advancing climate finance in Pakistan and mobilising international capital for sectors vital to the country’s sustainable and resilient growth. He added that the agreement also reflects the confidence of a leading global development finance institution in the bank’s governance and ability to deliver high-impact investments.
Leslie Maasdorp said increasing access to climate finance is essential for strengthening Pakistan’s resilience against climate change and supporting sustainable economic growth. He said BII’s investment would channel much-needed capital into climate mitigation and adaptation projects, particularly in the agricultural sector, while advancing the institution’s commitment to significantly expand climate-related investments under its new five-year strategy.
