The Pakistani government is planning to launch a $250 million Green Impact Fund (GIF) to support green micro and small enterprises (MSMEs) in the country. This initiative aims to channel international climate financing commitments to address climate challenges and foster economic growth.
The proposal for the Green Impact Fund was developed by Karandaaz, a non-profit organization funded by international donors. The plan was discussed during a meeting of the Prime Minister’s Committee on Social Impact Financing, chaired by Finance Minister Muhammad Aurangzeb. The meeting brought together stakeholders from both the public and private sectors, including representatives from Akhuwat Foundation, Pakistan Environment Trust, InfraZamin, and the Pakistan Microfinance Investment Company.
The Green Impact Fund will provide concessional loans, equity with first loss guarantees, and technical assistance to green MSMEs. The fund will draw support from global climate financing sources, commercial institutions, and donor funding. The goal is to promote bottom-up development by creating jobs and empowering underserved communities while addressing climate challenges.
The establishment of the Green Impact Fund is seen as a significant step towards mobilizing philanthropic capital and global impact investments for underserved communities. The initiative aims to develop a robust regulatory framework for social impact financing and measure the actual social impact of financial inclusion efforts.
