A new study by Mobilink Bank and the Sustainable Development Policy Institute (SDPI) highlights the financial vulnerabilities of women farmers in Pakistan due to climate shocks and limited access to formal financial services. The study, “Designing Gender-Responsive Climate Finance,” emphasizes the need for gender-responsive climate finance solutions to protect livelihoods and enhance resilience.

Unveiled at a high-level policy dialogue in Islamabad, the findings revealed a disconnect between women’s agricultural contributions, climate risks, and access to finance. Adviser to the Finance Minister, Adnan Pasha, stressed the importance of recognizing women as economic actors and encouraged banks to tailor products to their needs, addressing issues of access, collateral, and climate resilience.

Mobilink Bank’s Khowla Shoaib reported that women represent over 21% of its agricultural portfolio. The SDPI study found that over 90% of women farmers experienced extreme climate events, and borrowing is a common coping strategy. Ayesha Naeem from SDPI highlighted the structural barriers women face in agriculture, noting that only 1.5% of agricultural households are female-headed.

The study indicated a significant gender gap in financial access, with 56% of men having full-service financial accounts compared to just 14% of women. The urgency for solutions is underscored by the damages from the 2022 floods, estimated at over US$30 billion.

Dr. Sajid Amin Javed from SDPI emphasized the study’s critical gender perspective and the need for partnerships with institutions such as Mobilink Bank to support this research further. Engr. Ubaid Zia noted that while women farmers bear the brunt of climate impacts, the formal financial system does not adequately support them.