Women farmers across Pakistan are increasingly resorting to borrowing as a coping mechanism against climate-related adversities, while remaining largely excluded from formal financial services, a recent study reveals. The research, titled “Designing Gender-Responsive Climate Finance: A Diagnostic Study and Product Framework for Women Farmers in Pakistan,” was conducted by Mobilink Bank in collaboration with the Sustainable Development Policy Institute (SDPI).
The study found that more than 90% of women farmers surveyed had experienced extreme climate events such as heatwaves, floods, heavy rainfall, or drought-like conditions within the past five years. Over 80% reported crop losses or other detrimental impacts on their farming activities. Borrowing emerged as one of the most common strategies for managing these shocks across eight districts in Punjab and Sindh.
These findings underscore a widening disparity between women’s significant contributions to agriculture, their vulnerability to climate risks, and their limited access to formal financial resources. The study highlights the urgent need for financial products tailored specifically to the unique challenges faced by women farmers.
In a significant development, the research was presented at a policy dialogue in Islamabad, co-hosted by SDPI and Mobilink Bank. The event brought together government officials, financial regulators, banks, development finance institutions, and partners to explore practical financial solutions based on the study’s insights.
Adviser to the Finance Minister, Adnan Pasha, who attended as guest of honour, emphasized the necessity of formally recognizing women farmers as vital economic contributors to Pakistan’s agricultural sector. He noted that policy recommendations from the study were under government consideration and urged financial institutions to create products that overcome barriers such as limited access to finance, collateral constraints, and climate-related risks.
The study revealed that while 67% of employed women in Pakistan work in agriculture, only 1.5% of agricultural households are officially recorded as female-headed, highlighting a significant disconnect between women’s actual roles and their formal economic recognition. Land ownership remains a major obstacle, with only about 2% of ever-married women aged 15 to 49 owning land either individually or jointly. Moreover, 97.2% reported no inheritance of land or housing.
This disparity is especially stark in Sindh, where 99.1% of women surveyed do not own land. Limited ownership of productive assets restricts women farmers from qualifying for conventional agricultural credit, which often requires land or collateral.
The study also identified a pronounced gender gap in access to financial and digital services: 56% of men have full-service financial accounts compared to just 14% of women. Similarly, mobile wallet ownership stands at 48% among men but only 11% among women. These structural barriers become even more critical when climate shocks destroy crops, livestock, and income sources.
For instance, in Khushab, every woman who reported using coping strategies had borrowed money, while over half had sold livestock. Although these measures provide short-term relief, they can undermine future income-generating capacity.
Based on field research across eight districts in Punjab and Sindh, the study aims to identify financial products and policy interventions that can help women farmers manage climate risks while improving their access to formal finance.
Khowla Shoaib, Head of Strategy, Sustainability and Women Financial Services at Mobilink Bank, noted that agriculture constitutes about 60% of the bank’s gross loan portfolio, with women accounting for more than 21%. She said the findings confirm the bank’s understanding of the financial and climate challenges women farmers face and will guide the enhancement of existing services and development of new gender-responsive financial products.
Pakistan ranks among the countries most vulnerable to climate change, facing frequent floods, heatwaves, erratic rainfall, and droughts that threaten agriculture and rural livelihoods. The 2022 floods caused over $30 billion in damages and economic losses, with an estimated $16.3 billion required for resilient reconstruction.
SDPI Deputy Executive Director (Research), Dr Sajid Amin Javed, highlighted the study’s importance in focusing climate finance at the small farmer level rather than on broader financing needs. He stressed the critical role of a gender perspective, noting that many women involved in agriculture remain unrecognized as agricultural workers.
“Strengthening rural economies, particularly agriculture and livestock, is key to bolstering Pakistan’s overall economy,” Javed said, emphasizing that partnerships with financial institutions like Mobilink Bank can sustain research through access to extensive customer data.
Engr Ubaid Zia, Head of the Energy Unit at SDPI, pointed out that women are already bearing the brunt of climate shocks through their agricultural work and borrowing but are inadequately served by the formal financial system. He described the problem as structural, with many financial products based on assumptions of land ownership, individual mobility, and digital access that do not align with the realities faced by women farmers.
The researchers called for a transition to gender-responsive and climate-sensitive financial products that provide timely credit, support recovery after climate shocks, and help protect productive assets such as livestock. The study suggests that enhancing women’s access to finance is not merely a matter of inclusion but a crucial factor in strengthening Pakistan’s agricultural resilience amid growing climate risks.
