Mobilink Bank, SDPI Call for Gender-Responsive Climate Finance for Women Farmers

Climate finance for women farmers needs urgent reform in Pakistan as rising climate risks expose deep gaps in access to formal financial services, according to a new study by Mobilink Bank and the Sustainable Development Policy Institute (SDPI).

The study found that many women farmers are borrowing money to cope with climate-related shocks. However, structural barriers continue to limit their access to formal finance, land ownership and digital financial services.

Titled “Designing Gender-Responsive Climate Finance: A Diagnostic Study and Product Framework for Women Farmers in Pakistan,” the study draws on field research across eight districts in Punjab and Sindh.

The findings were presented at a policy dialogue jointly hosted by SDPI and Mobilink Bank in Islamabad. Government officials, financial regulators, banks, development finance institutions and development partners attended the event.

The discussion focused on turning research findings into practical financial products that can help women farmers protect their livelihoods, recover from climate shocks and strengthen long-term resilience.

Women Farmers Face Rising Climate and Financial Risks

The research found that more than nine in 10 women farmers surveyed had experienced an extreme climate-related event during the previous five years.

These events included heatwaves, floods, heavy rainfall and drought-like conditions.

More than 80% of respondents reported crop losses or other negative impacts on farming. Borrowing ranked among the first or second most common coping strategies in every district covered by the study.

In Khushab, every woman who reported using a coping strategy had borrowed money. More than half had also sold livestock, a step that could weaken future household income.

The findings suggest that women farmers are already using informal financial mechanisms to absorb climate shocks. Yet the formal financial system often fails to reflect their economic role or specific needs.

Major Gender Gaps in Agriculture and Finance

The study also highlighted significant structural barriers facing women in Pakistan’s agricultural economy.

According to the research, 67% of employed women in Pakistan work in agriculture. However, only 1.5% of agricultural households are formally recorded as female-headed.

Land ownership remains another major obstacle.

Only about 2% of ever-married women aged 15 to 49 own land either alone or jointly. Meanwhile, 97.2% have not inherited land or a house.

The situation is particularly pronounced in Sindh, where 99.1% of surveyed women did not own land either alone or jointly.

These ownership gaps can make it difficult for women to meet conventional collateral requirements when seeking formal credit.

The financial and digital divide adds another layer of exclusion. The study found that 56% of men have full-service financial accounts, compared with only 14% of women.

Mobile-wallet ownership also shows a substantial gap, standing at 48% among men compared with 11% among women.

Government Calls for Tailored Financial Products

Adviser to the Finance Minister Adnan Pasha, who attended the launch as guest of honour, called for greater recognition of women farmers as economic actors and contributors to Pakistan’s agricultural economy.

Pasha said the government was considering policy recommendations emerging from the study.

He also urged financial institutions to develop products and systems that reflect women’s circumstances, particularly around access to finance, collateral and climate resilience.

He recognised SDPI’s role in advancing policy reforms and Mobilink Bank’s efforts to expand women’s financial inclusion.

Mobilink Bank Highlights Agriculture Portfolio

Khowla Shoaib, Head of Strategy, Sustainability & Women Financial Services at Mobilink Bank, said the bank’s existing portfolio reflects its focus on women in agriculture.

She said agriculture accounts for approximately 60% of the bank’s total gross loan portfolio, while women represent more than 21%.

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According to Shoaib, the study supports the bank’s assessment of the financial and climate-related barriers affecting women farmers.

She added that the research has provided additional insights that can strengthen the bank’s existing portfolio and support the development of new gender-responsive products.

Climate Damage Raises the Stakes

The need for stronger climate finance has become more pressing as Pakistan faces repeated climate-related disasters.

The 2022 floods caused more than $30 billion in damage and economic losses, while an estimated $16.3 billion was required for resilient reconstruction.

For rural households, the effects can extend well beyond immediate crop losses. Farmers may sell livestock, borrow money or reduce productive assets to meet short-term needs.

For women farmers with limited access to land, formal credit and digital financial services, those coping mechanisms can create additional vulnerabilities.

SDPI Urges a Micro-Level Approach

Dr Sajid Amin Javed, Deputy Executive Director (Research) at SDPI, said the study’s strength was its focus on climate finance at the micro-farmer level.

He stressed the importance of applying a gender lens to agricultural policy because many women contribute to farming without formal recognition as agricultural workers.

Javed said strengthening the rural economy, particularly agriculture and livestock, is essential to strengthening Pakistan’s wider economy.

He also highlighted the value of partnerships with financial institutions such as Mobilink Bank, which can provide access to large-scale customer data to support continued research.

Financial System Needs to Reflect Women’s Reality

Engr. Ubaid Zia, Head of the Energy Unit at SDPI, said women are already performing agricultural work, absorbing climate shocks and borrowing to survive.

Yet, he argued, the formal financial system does not adequately reflect their circumstances.

Zia said the challenge is particularly important for Pakistan because of its exposure to climate risks.

He argued that exclusion is structural and often linked to financial products designed around land ownership, individual mobility and digital access.

Those requirements do not always match the realities faced by women farmers in rural communities.

Toward More Inclusive Climate Finance

The study’s findings point to the need for financial products that move beyond traditional lending models.

Potential solutions will need to consider women’s limited land ownership, unequal access to digital services and exposure to climate-related agricultural losses.

For policymakers and financial institutions, the challenge is therefore not only to increase lending but also to design products that women farmers can realistically access and use.

The research provides a framework for linking financial inclusion with climate resilience at the farm and household level.

As climate risks continue to affect Pakistan’s agricultural economy, improving women’s access to finance could become an important part of protecting rural livelihoods and strengthening the country’s broader economic resilience.