UK’s BII & HBL-Pakistan Forge Powerful Partnership to Enhance Climate Resilience for Farmers
British International Investment (BII) partners with HBL-Pakistan in a $75M finance facility to support smallholder farmers, strengthening climate resilience and boosting productivity.
British International Investment (BII), the UK’s development finance institution, has announced a $75 million finance facility in partnership with HBL, Pakistan’s leading bank. This initiative aims to provide essential financial support to Pakistan’s agriculture sector, which contributes 24% to the country’s GDP and employs 37% of its workforce. The focus will be on smallholder farmers, particularly those in dairy and poultry farming, who often lack access to financing for modern agricultural practices.
Importance of Agriculture in Pakistan
- Agriculture is a cornerstone of Pakistan’s economy, providing employment to a significant portion of the population.
- The sector, however, faces challenges such as limited access to modern farming equipment, climate change threats, and financial constraints.
- Smallholder farmers, who constitute over 90% of the farming community, struggle with financing their agricultural activities.
Climate-Resilient Financing: A Step Towards Sustainability
With this financial support, HBL aims to:
- Dedicate 50% of the funds to smallholder farmers to help them access essential resources.
- Improve financial inclusion in agribusinesses across the agricultural value chain.
- Support climate adaptation initiatives such as solar-powered irrigation systems to enhance resilience and reduce emissions.
How Farmers Benefit
- Increased Access to Finance: Smallholder farmers can now invest in modern technology and improved farming methods.
- Climate Adaptation Solutions: The funding supports environmentally friendly initiatives such as solar-powered irrigation.
- Improved Livelihoods: Higher agricultural productivity leads to increased earnings for farmers and economic stability.
Statements from Key Stakeholders
British High Commissioner, Jane Marriott CMG OBE:
“The agriculture sector is critical for Pakistan’s economic growth, food security, and the livelihoods of many. This UK partnership will help overcome financial barriers to investing in climate-proof farming practices.”
Habib Yousuf, Regional Director for South Asia at BII:
“BII is proud to partner with HBL to enhance the resilience and productivity of Pakistan’s agriculture sector. This initiative will ensure sustainable growth, improved livelihoods, and food security.”
Maya Inayat Ismail, Chairperson, HBL Sustainability Forum:
“At HBL, sustainability is a core principle embedded across our operations. Through climate-smart financing and yield insurance programs, we help farmers mitigate risks from climate change and ensure financial security.”
UK’s Commitment to Pakistan’s Climate Resilience
The UK government has committed £108 million over seven years to support Pakistan’s climate resilience efforts. This includes:
- Mobilizing private sector investments for climate initiatives.
- Funding climate technologies to develop sustainable infrastructure.
- Allocating £12 million for technical assistance to low-carbon innovators in Pakistan.
The Future of Green and Climate-Resilient Financing in Pakistan
The BII-HBL partnership marks a significant step towards green finance and sustainable farming. By improving access to capital, promoting climate-resilient agricultural practices, and strengthening agribusinesses, the initiative is set to create long-term economic and environmental benefits for Pakistan.
About British International Investment (BII)
BII is the UK’s development finance institution and impact investor, investing in sustainable businesses across Africa, Asia, and the Caribbean. The organization has committed 30% of its total new investments between 2022-2026 to climate finance. BII has investments in over 1,580 businesses across 65 countries and net assets of £8.5 billion. Learn more at www.bii.co.uk.
About HBL-Pakistan
Founded in 1947, HBL is Pakistan’s first commercial bank and remains the country’s leading private financial institution. With over 1,700 branches and 37 million clients worldwide, HBL is at the forefront of financial inclusion and innovation in Pakistan. More details at www.hbl.com.
Conclusion
The BII-HBL finance facility is a game-changer for Pakistan’s agriculture sector. By empowering smallholder farmers with access to sustainable financial resources, the initiative strengthens food security, boosts economic growth, and enhances resilience against climate change. This strategic partnership aligns with Pakistan’s vision for a greener, climate-resilient future.
Internal Links:
- Pakistan’s Climate Resilience Strategies
- Sustainable Agriculture Practices in South Asia
- Impact of Green Finance on Economic Growth
