Karachi: The academia and independent financial institutions have urged the State Bank of Pakistan (SBP) to provide more financing for the provision of green energy projects for the country’s real estate sector, news sources reported on November 25.
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According to the report, long-term financing should be provided through the Incentive Scheme for Renewable Energy Programs (ISREP). As per the analysis, such an endeavor will help minimise the pressure on the national grid, lower the risk of circular debt, and lessen the impact of dollar conversion as contracted with Independent Power-Producer (IPP) mode projects.
The research, released by NED University Karachi, also recommended increasing the renewable energy mix from 2.5% to considerably higher percentage of total energy consumption, hence reducing the country’s carbon footprint. The paper also looked at the role of private banking institutions in financing the green project.
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It is worth noting that the SBP established the Green Banking Guidelines (GBG) in 2017 with the intention of transforming the country’s economy and recognizing the role of the financial sector in achieving low-carbon and climate-resilient economy. During 2017–21, the SBP funded roughly PKR 83 billion through banks and PKR 3 billion to DFIs through the ISREP.