Commercial banks told to clear LCs of prioritized sectors of up to $100,000
\n KARACHI
\nThe State Bank of Pakistan (SBP) on Wednesday hinted at easing import restrictions imposed by the government to keep foreign exchange reserves under tight control.
\nThis was suggested by State Bank Governor Jameel Ahmed while launching the Sustainable Banking Conference in collaboration with International Finance Corporation (IFC), a member of the World Bank Group in Karachi Wednesday.
\nThe objective of the conference was to create critically needed awareness related to climate change and sustainability within the financial sector and launch the Environmental and Social Risk Management (ESRM) Implementation Manual.
\nResponding to media questions about the government\u2019s stringent import policy of the past few months, he said that commercial banks have been told to clear Letters of Credit (LCs) of up to $100,000.
\nHe said that commercial banks must facilitate priority sectors when clearing LCs, particularly importing the remaining parts and machineries of projects which are near completion. Earlier, at the Sustainable Banking Conference, Governor State Bank Jameel Ahmed highlighted Pakistan\u2019s vulnerabilities to the impacts of climate change.
\nHe went on to add that the SBP had launched an Environmental and Social Risk Management manual as part of the central bank\u2019s ongoing efforts to promote green banking in Pakistan. The Governor remarked that this manual has been launched as part of SBP\u2019s ongoing efforts to promote green banking in Pakistan.
\nThe ESRM manual is a procedural guide for the banks\/DFIs to establish their environmental & social risk management systems, as advised in SBP\u2019s Green Banking Guidelines (GBGs).
\nFurther, he highlighted that the conference was an effort to spread awareness on the impact of climate change and environmental degradation on the financial sector of Pakistan and a step towards SBP\u2019s endeavor to reduce the vulnerability of financial sector from such risks.
\nHe added that Pakistan is one of the most vulnerable countries to the impacts of climate change as we have witnessed during the recent floods; therefore, it is critical time for Pakistan\u2019s financial sector to become sensitive to financial consequences arising from environmental & social risks.
\nSBP, being a responsible regulator of the financial system, has also undertaken certain initiatives like Green Banking Guidelines and Financing Scheme for Renewable Energy, to ingrain sustainability considerations into the financial sector as per international best practices.
\nThe SBP Governor encouraged the entire banking industry to take full benefit of the manual to establish their ESRM systems and procedures. State Bank will keep on providing necessary support and guidance at every stage of ESRM implementation.
\nIn the inauguration ceremony, Khawaja Aftab Ahmed, IFC Regional Director for the Middle East, Pakistan and Afghanistan, shared that the launch of the Environmental and Social Risk Management (ESRM) Implementation Manual marks a significant step towards promoting sustainable banking practices in Pakistan.
\nHe added that the manual can help the banking industry better manage environmental and social risks throughout their lending practices, and subsequently, enable a green and inclusive economic recovery at a critical time for Pakistan.
\nThe conference also included two high-level panel discussions on important topics including ESG integration in financial sector and climate finance risk & climate disclosures wherein, in addition to other senior level experts, two ex-SBP Governors shared their experiences. Deputy Governor, Sima Kamil concluded the conference and thanked all participants.
\nAddressing the audience, IFC Regional Director for the Middle East, Pakistan and Afghanistan Khawaja Aftab Ahmed stated that the launch of the Environmental and Social Risk Management (ESRM) Implementation Manual marked a significant step towards promoting sustainable banking practices in Pakistan.
\nDuring the conference, SBP Executive Director Syed Samar Hasnain moderated a Panel discussion on Environmental, Social and Governance Integration in Pakistan\u2019s Financial Sector followed by a discussion by IFC Senior Policy Advisor Yaseen Anwar on climate finance, risks, and climate disclosures in Pakistan.<\/p>\n","protected":false},"excerpt":{"rendered":"
Commercial banks told to clear LCs of prioritized sectors of up to $100,000 KARACHI The State Bank of Pakistan (SBP) on Wednesday hinted at easing import restrictions imposed by the government to keep foreign exchange reserves under tight control. This was suggested by State Bank Governor Jameel Ahmed while launching the Sustainable Banking Conference in […]<\/p>\n","protected":false},"author":2,"featured_media":260846,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[414],"class_list":{"0":"post-294274","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-business","8":"tag-sbp"},"yoast_head":"\n