On January 16, 2025, Pakistan announced the establishment of a $250 million Green Impact Fund (GIF) aimed at financing green micro and small enterprises (MSMEs). This initiative, discussed during a meeting of the Prime Minister's Committee on Social Impact Financing, seeks to channel international climate financing to address climate challenges and stimulate economic growth.
The proposal, developed by the non-profit organization Karandaaz, was presented by Finance Minister Muhammad Aurangzeb. The fund will provide concessional loans, equity with first-loss guarantees, and technical assistance, supported by global climate financing and donor funding.
Stakeholders from various sectors, including the Akhuwat Foundation and the Pakistan Environment Trust, participated in the discussions, emphasizing the initiative's potential to create jobs and empower underserved communities. The Ministry of Poverty Alleviation and Social Safety also highlighted its ongoing social impact financing initiatives, including programs for cash transfers and livelihood training aimed at poverty alleviation.
Furthermore, the Finance Minister stressed the importance of measuring the social impact of financial inclusion efforts and called for a structured approach to monitoring and reporting outcomes. He underscored the need for capacity building and the development of comprehensive systems to track progress across all sectors.