Pakistan opens door to impact investing

May 15, 2026 (MLN): The Government of Pakistan is developing an enabling policy framework to support impact investing, encourage private-sector participation, and channel capital towards measurable social, economic, and climate outcomes.

This was stated by Adnan Pasha Siddiqui, Advisor to the Federal Minister for Finance and Revenue, while speaking at the Impact Finance Training (IFT) 2026 workshop held in Karachi on 14 and 15 May 2026.

Siddiqui appreciated the initiative led by Karandaaz Pakistan and highlighted the importance of capacity building and skills development for the financial sector.

He noted that both the Social Impact Financing and Sustainable Finance frameworks make it clear that mobilising outcome-linked private capital is essential for advancing Pakistan's socio-economic development and climate priorities.

Recognising the scale of financing required, he added that the Government is actively working on an enabling environment that channels investment towards outcomes that are social, economic, and climate-focused.

The two-day workshop, titled "Impact Finance Training (IFT) 2026: From Value to Vision," was hosted by Karandaaz Pakistan in collaboration with the Pakistan Banks Association (PBA) and supported by the Ministry of Finance.

Building on last year's initiative, the event brought together senior professionals from commercial banks, development finance institutions, and investment firms to strengthen the integration of impact finance principles into investment and lending decisions.

The sessions were led by impact finance practitioner Alex MacGillivray, Executive Director at the Joint Impact Model Foundation, and focused on practical frameworks to align capital allocation with measurable social, environmental, and economic outcomes.

Syed Salim Raza, Chairperson of Karandaaz Pakistan, highlighted that impact finance represents an important evolution in how financial institutions assess value, risk, and long-term development outcomes.

He noted that for Pakistan, this means strengthening institutions' ability to direct capital towards measurable economic, social, and environmental outcomes.

He further stated that through this training, Karandaaz is supporting the financial sector with practical frameworks to embed impact considerations into investment and lending decisions, linking the initiative to Karandaaz's broader role in advancing impact finance across the country.

Thomas Burge, Deputy Head of Mission at the British Deputy High Commission, said that sustainable economic growth and climate resilience will increasingly depend on the ability to mobilise private capital at scale.

He emphasised that this requires a financial sector equipped with the right skills, tools, and frameworks to identify and deliver high-impact investments. He added that the UK is pleased to support initiatives that strengthen this capacity and promote the integration of impact outcomes into financial decision-making in Pakistan.

In his closing remarks, Muneer Kamal, CEO and Secretary General of PBA, emphasised the key role the banking sector has to play in driving sustainable and inclusive growth.

He highlighted that as the representative body of Pakistan's banking industry, PBA remains committed to facilitating capacity building and collaboration around emerging areas such as impact finance and sustainable banking.

He further noted that initiatives such as IFT 2026 help strengthen institutional understanding and develop the frameworks needed to integrate responsible, development-focused, and impact-oriented financing practices across the financial sector.

The workshop reflects the ongoing collaboration between the Ministry of Finance, Karandaaz, and PBA to strengthen institutional capacity.

As demand for impact-aligned capital grows, organisers noted that initiatives such as IFT 2026 can help strengthen the tools, frameworks, and institutional understanding needed to build a more responsive financial ecosystem that supports long-term, inclusive growth.

Karandaaz Pakistan advances shared prosperity by strengthening Pakistan's financial and digital ecosystem through strategic investments, innovation, and partnerships.

Focused on inclusive, green, and sustainable growth, it expands financial access, supports businesses, and drives digital transformation.

Karandaaz was established in 2014 with seed grant funding from the UK Government's Foreign, Commonwealth and Development Office. For its digital financial services work, Karandaaz Pakistan avails grant funding from the Gates Foundation.

The Pakistan Banks Association, established in 1953, is the representative body of Pakistan's banking sector, working to foster a conducive environment for banking operations and financial services.

PBA currently represents a strong network of 47 financial institutions, with membership comprising conventional banks, Islamic banks, Development Finance Institutions, and Microfinance Banks, collectively reflecting the diversity, scale, and depth of Pakistan's financial sector and its critical role in supporting national economic growth and stability.

PBA advances its members' collective interests and plays a pivotal role in policy advocacy, regulatory engagement, and industry collaboration, and remains committed to advancing financial inclusion, digital transformation, and sustainable development through innovation and collaboration.

The Impact Finance Training is a capacity-building initiative designed to equip financial sector professionals with tools and frameworks to integrate impact considerations into investment and lending decisions, supporting sustainable and inclusive growth.

Copyright Mettis Link News