Pakistan has introduced a \$102 million Climate Risk Fund-I (CRF-I) under the World Bank–backed RAM Project. The fund is designed to protect small farmers and microfinance institutions from the damaging effects of climate change, particularly floods.
The State Bank of Pakistan will manage this fund, which has two main parts. The first is the Innovative Agriculture Liquidity Facility, aimed at helping farmers use new agricultural technologies and climate-friendly practices. The second is the Contingent Liquidity Facility, which will give microfinance institutions the financial support they need to keep operating during natural disasters.
The goal of the fund is to make agriculture in Pakistan more climate-resilient and sustainable. It will ensure that farmers have timely access to financial support so they can recover faster from climate shocks such as heavy rains and floods. At the same time, it will keep microfinance institutions stable, allowing them to continue serving rural communities and small businesses in times of crisis.
This initiative reflects Pakistan’s efforts to combine financial solutions with climate adaptation. By securing both farmers and financial institutions, the fund strengthens food security, protects rural incomes, and promotes long-term resilience in the agriculture sector.
The Climate Risk Fund is not just about recovery from disasters but also about building a stronger foundation for the future. It shows a commitment to supporting vulnerable communities, reducing risks from climate change, and preparing the agricultural sector for the challenges ahead.
