USD54 Million Credit Line and A €675,000 Grant Dedicated To Foster Low-Carbon And Climate-Resilient Growth In Pakistan**

This collaboration comes at a crucial time as Pakistan grapples with significant structural challenges, including vulnerability to natural catastrophes such as climatic hazards and earthquakes. Ranked as the twentieth highest gas emitter globally, Pakistan has committed to reducing its emissions by 50% before 2030. In alignment with this national goal, BoP, the second-largest public bank in the country, is determined to enhance its climate strategy and finance activities with climate co-benefits.

The initiative's primary objectives are to:

1. Support BoP in strengthening its climate finance strategy.

2. Sustain and expand electricity production capacities in Pakistan.

3. Aid project holders in deploying low-emitting and climate-resilient investments.

4. Integrate environmental, social risks, and gender equality challenges into BoP’s operations.

This financing package includes a USD54 million non-sovereign credit line and a €675,000 grant dedicated to capacity building.

The project is poised to deliver significant results, fostering sustainable and resilient growth in Pakistan by providing access to concessional long-term green financing amidst the country's high interest rates. Additionally, it will support the development of a reliable and decarbonized electricity production system, enhancing Pakistan's resilience to climate change impacts.

Cyrille BELLIER, AFD Head of department Eastern Europe - Middle East – Asia, emphasized the importance of this partnership, stating, "This collaboration with the Bank of Punjab marks a significant step towards achieving a sustainable future for Pakistan. By integrating climate finance into the core strategy of one of the country's leading public banks, we are not only addressing the immediate energy needs but also laying the groundwork for long-term resilience against climate change. Our joint efforts will support the deployment of innovative, low-carbon projects that will benefit both the environment and the people of Pakistan."

The partnership between AFD and BoP signifies a robust commitment to tackling climate change challenges and promoting sustainable economic development in Pakistan. Through this initiative, both organizations aim to create a model that can be replicated across other sectors and regions, setting a benchmark for climate-resilient growth.

About Agence Française de Développement

Agence Française de Développement (AFD) implements France’s policy on international development and solidarity. Through its financing of NGOs and the public sector, as well as its research and publications, AFD supports and accelerates transitions towards a fairer, more resilient world. It also provides training in sustainable development (at AFD Campus) and other awareness-raising activities in France.

With our partners, we are building shared solutions with and for the people of the Global South. Our teams are at work on more than 3,250 projects in the field, in the French Overseas Departments and Territories, in 115 countries and in regions in crisis. We strive to protect global public goods – promoting a stable climate, biodiversity and peace, as well as gender equality, education and healthcare. In this way, we contribute to the commitment of France and the French people to achieve the Sustainable Development Goals (SDGs). Towards a world in common.

For media inquiries, please contact:

Arabella SEEBALUCK

Regional Communications Manager for South Asia

+91 96677 08489

Twitter: @araluck