Kanwal Naseer

Green financing is a loan or investment that helps eco-friendly projects or activities, such as purchasing environment-friendly goods and services or building environment-friendly infrastructure. This initiative can be supported through changes in a country’s regulatory framework by increasing investment in clean and green technology, financing the development of green projects and so on.

Talking to WealthPK, Muhammad Zafran Chaudhry, Branch Manager JS Bank, Chakri Road Rawalpindi said green financing project benefited entrepreneurs and businesses by lowering the power costs. He said the green loan initiative developed by the banks was aimed at creating a society more considerate of the environment. He said the program will allow local businesses to boost growth by implementing green projects such as solar panels and solar hot water systems.

The program will generate substantial savings while being beneficial to the environment. Zafran further said ensuring universal access to affordable, reliable, sustainable and clean energy will open up a new world of opportunities for billions of people by creating new economic opportunities, jobs, and also improving health. JS Bank is a leader in provision of insurance solutions and digital banking.

The prestigious Best Environmental and Social Governance award has also been given to JS Bank. Zafran said JS Smart Roshni or smart solar panel financing was released under an initiative of the State Bank of Pakistan (SBP) to promote green financing in Pakistan. He said JS Smart Roshni was a smart solar panel financing solution that allowed the companies to minimize their dependence on the grid for energy. ‘’JS Smart Roshni offers term loan financing at a heavily discounted mark-up rate of just 6% a year.

Most importantly, this type of initiative also gives a certain message to the society that we should be careful about the environment and footprint. Our foremost recommendation is to go for solar energy and green financing,’’ said the JS Bank manager. According to WealthPK, Pakistan's economy is facing two challenges – energy shortage and climate change. Insufficient supply of energy has had a significant influence on the expansion of businesses and the general welfare of the people.

Climate change has also been seen in shape of destructive floods, droughts, heat waves, and altering weather patterns. These changes fundamentally limit our potential to progress in a sustainable manner. Businesses must practise resource efficiency and rely on green energy sources which would not only help Pakistan establish a cleaner energy mix, but also lower the country's financial and environmental costs.

Credit : Independent News Pakistan-WealthPk