Financing for sustainable development need of hour: Reza Baqir

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Staff Reporter
Karachi

State Bank of Pakistan (SBP) Governor Dr Reza Baqir has said that financing for sustainable development is the need of the hour and Financial Institutions have a crucial role in this area.

He was addressing a webinar jointly hosted by SBP and Unilever Pakistan to create awareness about the SBP’s Renewable Energy Financing Scheme which has been used by Unilever to convert 30% of its factories to renewable energy.

Dr Baqir stated that the Pakistan faces challenge as a result of climate change and adopting prevention strategies are of paramount importance.

In this regard he pointed out that the SBP has issued Financing Scheme for Renewable Energy with a view to promote renewable energy projects.

The SBP Governor highlighted the key features of the scheme that can be beneficial for the stakeholders ranging from the corporates to the individuals.

The scheme has evolved over time and received strong response and Dr Baqir urged participants to benefit from this facility.

As of February 2021 financing of around Rs36 billion have been extended for 521 projects producing approximately 850 MW.

He went on to add that mobilization of financial resources towards resource efficient and sustainable avenues would play a central role in mitigating climate change.

Pakistan is member of Global Sustainable Banking Network (SBN) since 2015 and green/ sustainable finance policies are being aligned with global environmental and social standards and best practice.

Chairman and CEO of Unilever Pakistan, Amir Paracha in his address said that the Renewable Energy Financing Scheme offers tremendous social and business value to companies and producers both in terms of their environmental footprint and cost savings ambitions.

The financing scheme in Pakistan has enabled them to fast-track their renewable energy goals whilst remaining financially feasible.

He mentioned that Unilever is sharing this as a best practice for other corporate players, as its sustainability in its best form.

They are benefitting the country and environment whilst their own business has seen a positive impact.

The webinar was attended by various chambers, media organizations, Presidents and CEOs of banks, energy experts, representatives of Pakistan Business Council and senior officials from SBP.