Regulatory Alerts2025-12-26 | SH&SFD Circular No. 07 of 2025Added · Updated
Regulatory Framework for Effective Management of Climate-related Financial Risks
The State Bank of Pakistan mandates that banks, microfinance banks, and development financial institutions integrate climate-related financial risks into their governance, risk management, and capital adequacy frameworks. Financial institutions must submit board-approved implementation plans by September 30, 2026, and achieve full compliance with the framework by June 30, 2029. The rules require the establishment of board and senior management oversight committees, the incorporation of physical and transition risks into stress testing, and the adoption of specific data governance and reporting standards.
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