Circulars/Notifications / Infrastructure, Housing & SME Finance Department  

 IH&SMEFD Circular No. 08 of 2017
October 09, 2017

The Presidents/Chief Executives
All Banks/DFIs

Dear Sir / Madam,

Green Banking Guidelines (GBG)

     With a view to safeguarding against environmental risks emerging from banks and DFIs' businesses and operations, State Bank is pleased to issue Green Banking Guidelines (GBG). These Guidelines deal with the following three areas:

  • Risk Management for increasing financial stability through understanding, management and mitigation of environmental exposures of financing portfolios.
  • Business Facilitation for fostering development of 'green' market through actively tapping the emerging viable business opportunities of financing to clean energy and resource efficiency projects.
  • Own Impact Reduction for potential re-engineering of banks and DFIs' internal operations and procedures with a view to reducing impact on environment and society.

2. While primary responsibility to ensure compliance of environmental laws & regulations rests with the Board of Directors and management of the respective borrowers, these Guidelines are expected to reduce potential losses of banks and DFIs through proper management of environmental vulnerability of their financing portfolios. These Guidelines will also augment banks and DFIs' profitability by increasing investments in relatively untapped segments of environmentally-compliant, resource-efficient and socially-responsible businesses.

3. State Bank expects the banks and DFIs to implement these Guidelines within a year of issuance of these Guidelines. State Bank will also play its due facilitative role in implementation of these Guidelines through such measures as regular review of implementation status of banks and DFIs, trainings and awareness sessions and other support measures.

4. Please acknowledge receipt of this Circular.

Encl: Green Banking Guidelines

(Syed Basit Aly)


About SBP
Economic Data
Press Releases
Laws & Regulations
Monetary Policy
Help Desk
SBP Videos
SBP Welfare Trust
Contact us
What's New?
Online Tenders
Web Links

Educational Resources
Regulatory Returns
Rupey ko Pehchano
Zahid Husain Memorial Lecture
Best view Screen Resolution : 1024 * 768
Copyright © 2016. All Rights Reserved.