Power Division Plans Cheaper Electricity, Nepra Questions Discos
July 31, 2026
Bank Alfalah has partnered with Ahya Technologies to deploy AI-powered tools and advisory services for green banking and portfolio decarbonization, targeting Pakistan’s $40-50 billion annual climate finance deficit.
Pakistan needs between $40 billion and $50 billion every year to adequately address its climate risks. Its current active climate finance portfolio stands at approximately $400 million. That staggering gap is now at the centre of a new partnership between two of Pakistan’s most forward-looking financial institutions, and artificial intelligence is the bridge they intend to build.
Bank Alfalah and Ahya Technologies have formally partnered to deliver a suite of AI-powered software and strategic advisory services designed to accelerate Bank Alfalah’s green banking and sustainable finance transition.
The collaboration was announced on July 29, 2026, and positions Bank Alfalah as one of the first Pakistani banks to systematically deploy AI in service of portfolio decarbonization and ESG alignment.
The gap the partnership targets is not merely financial; it is structural. The Overseas Investors Chamber of Commerce and Industry (OICCI) has reported that Pakistan’s climate finance requirements dwarf current deployment by a factor of more than 100, with the Climate Finance wing at the Ministry of Climate Change and Environmental Coordination managing only a fraction of what is needed.
Against that backdrop, embedding climate data infrastructure inside one of Pakistan’s largest commercial banks carries outsized significance.
Ahya Technologies brings an AI-driven platform designed to operationalise sustainability commitments at the portfolio level.
The company’s tools are intended to help banks like Alfalah move beyond high-level ESG declarations and into the technical work of identifying emissions exposure, directing capital toward climate-vulnerable sectors, and generating the data-backed reporting that international investors and regulators increasingly demand.
Farooq Ahmed Khan, Group Head Corporate, Investment Banking and International Business at Bank Alfalah, said: “Our partnership with Ahya Technologies will strengthen our green banking capabilities through data-driven insights, ESG alignment, and responsible portfolio decarbonization.”
Salaal Hasan, Founder and CEO of Ahya, framed the stakes plainly: “Our mission is to bridge the gap between high-level sustainability commitments and the technical reality of operationalizing them.
This engagement is about more than just reporting; it’s about architecting a data-backed financial ecosystem that drives genuine climate resilience and long-term value across the country.”
As Pakistan navigates the dual pressures of climate vulnerability and economic recovery, the role of its banking sector in channelling capital toward green and resilient infrastructure has never been more critical.
This partnership suggests that at least some of Pakistan’s major banks are no longer waiting for policy mandates before getting to work.
