Technical Support for Climate-Smart Agriculture Financing for Pakistan

The project aims to support the enhancement of the capacity of SBP and the banking industry in Pakistan to implement climate-smart agriculture financing and ultimately contribute to climate resilience building in the country, including through the review and development of comprehensive guidelines for climate-smart agriculture financing. These guidelines will encompass best practices, tailored financing products, effective risk mitigation tools, and innovative climate-smart agricultural solutions.

Scope of Work:

1. Toolkit on climate-smart agriculture for farmers including relevant case studies.  Review of international best practices on climate smart agriculture relevant to Pakistan’s context and agriculture financing; development of a toolkit specifically for farmers that includes case studies on climate smart agriculture financing;
2. Gap analysis. Review of SBP’s Green Banking Guidelines as well as international policy frameworks on climate smart agriculture financing to identify gaps and policy recommendations for integration in the Green Banking Guidelines;
3. Climate risk profiling. Understanding climate risk profiling tools being used globally to assess lending risks in the agriculture sector; undertaking interviews, surveys, and consultations with local organizations, financial institutions, and agricultural lending banks to understand climate risk exposures; and developing tools and guidelines in assessing climate-related risk exposure for agricultural projects;
4. Capacity building for the Pakistan banking institution on climate-smart agriculture financing. Development of training modules and materials focused on providing guidance for banking institutions in developing policies for climate-smart agriculture financing; delivery of training sessions for the Pakistan banking institutions.