Page 10 - CMA Journal (July-August 2025)

Exclusive Interview

In order to support a number of data analytics goals and
use the data to improve our data-driven policies, SBP is
using data portals to gather supervisory and reporting Given the sensitivity of the issue,
data from its regulated entities. To ensure that SBP takes SBP has incorporated climate
appropriate action when circumstances call for it, we are
currently updating our data management infrastructure change as one of the strategic
and extensively using data to conduct in-depth financial
sector analysis and improve regulatory efficacy. SBP has themes in its Vision 2028, with a
also digitized its internal case processing, and now all cases
are processed using our internal knowledge management goal to develop policies that
system. Similarly, our regulated entities can also submit promote climate-resilient and
their cases to SBP using our Regulatory Approval System
(RAS). These systems have enhanced our working sustainable financing initiatives
efficiency and case processing capabilities. SBP is also
committed to embracing transformative technologies
such as artificial intelligence and machine learning to policies that promote climate-resilient and sustainable
bolster fraud prevention and enable proactive supervision. financing initiatives. SBP has taken various measures:
ICMA: What initiatives is SBP pursuing to improve 1) In 2017, SBP issued Green Banking Guidelines under
financial inclusion, especially for women and which Regulated Entities (REs) have been advised to
underserved communities? manage environmental and social risks associated
with their operations and financing activities.
Governor SBP: For a country with an adult population of
Particularly with respect to sustainability, banks/DFIs
around 137 million, we have 95.8 million unique bank
accounts and digital wallets, which make up almost 70% of have been advised to adopt paperless banking
services, which include delivering customer services
the adult population. This is phenomenal growth since 2015,
when only 16% of the adult population had bank accounts. through electronic means, sending e-statements of
bank accounts, and online submission of customer
Inclusive participation in the digital economy is a applications. Further, in the context of energy
strategic imperative for national growth and stability. If conservation, SBP advised its regulated entities to
the digital transformation leaves behind our youth, deploy energy-efficient IT equipment and
women, and marginalized communities, we will only be cost-effective, renewable sources of energy, such as
reinforcing the very inequities that digital technology the use of solar technologies for running bank
promises to address. branches, ATMs, and other infrastructure.
I would like to underscore the steps that the State Bank 2) The Environmental and Social Risk Management
has taken, starting with its Vision 2020, such as the Implementation Manual, issued by SBP in 2022,
launch of the National Financial Inclusion Strategy, the supports the transition to a climate-resilient
Banking on Equality policy to reduce or balance the economy by introducing standardized tools for
gender gap in banking, and the introduction of the environmental and social risk classification,
Asaan Mobile Account, enabling the low-income monitoring banks’ own environmental impact, and
segment to digitally open bank accounts without an encouraging lending to ‘green’ sectors.
internet connection.
3) The Government of Pakistan has approved the
It became imperative to realign the financial inclusion Pakistan Green Taxonomy (PGT), jointly developed by
framework to address the evolving requirements of a SBP and the Ministry of Climate Change &
more inclusive financial ecosystem. In 2024, SBP Environmental Coordination. The PGT intends to
launched its Vision 2028, where improvement in financial provide clarity to financial markets on how to identify
inclusion remained a key strategic goal. We are green economic activities, increase the transparency
committed to increasing the depth, breadth, and quality of green investments and financial products, mitigate
of financial services, particularly for the low-income climate-related financial risks, and help the financial
populace, SMEs, and farmers. sector direct capital flows to projects or activities that
will meet the country’s environmental and climate
ICMA: How is SBP integrating climate resilience and
sustainability into its digital finance agenda? objectives. PGT will further support the streamlining
of green product development within the banking
Governor SBP: SBP has been cognizant of its industry and will attract investments toward
responsibility, as well as the responsibility of the financial
environmentally friendly projects.
sector, in implementing initiatives regarding a
climate-resilient economy. Given the sensitivity of the The Editorial Board thanks Mr. Jameel Ahmad, Governor, State Bank
of Pakistan (SBP) for sparing his precious time to give an exclusive
issue, SBP has incorporated climate change as one of the interview for Chartered Management Accountant Journal.
strategic themes in its Vision 2028, with a goal to develop

8 ICMA’s Chartered Management Accountant, Jul-Aug 2025