Mobilink Bank introduces climate insurance to protect agri-borrowers from climate risks
Islamabad – October 01, 2024: Mobilink Bank, Pakistan’s leading digital microfinance bank, has introduced Climate Shock Insurance to protect small and medium-scale farmers and livestock owners from the escalating risks of climate change. Under the initiative, the Bank provides financial security by covering losses to crops and livestock resulting from unpredictable climate catastrophes, enabling farmers to maintain their livelihoods amid growing weather volatility. The insurance product is integrated into the Bank’s existing Agri-Lending and Livestock offerings, streamlining access to coverage and accelerating payout times compared to traditional disaster relief methods. Through this initiative, Mobilink Bank reinforces its commitment to Environmental, Social, and Governance (ESG) principles, promoting resilience and sustainability in the agricultural sector.
Pakistan’s agri-sector, vital to its economy, faces many threats from climate change, with forecasts predicting an 8% to 10% decline in productivity by 2040. In response, Mobilink Bank’s Climate Shock Insurance is designed to provide financial relief for farmers impacted by extreme weather events, including droughts, heavy rainfall and plant diseases. The insurance covers major crops such as wheat and rice and protects livestock from natural disasters and diseases.
Atta-ur-Rehman, Chief Business Officer Mobilink Bank, highlighted the significance of this initiative, stating, “The climate crisis is no longer a distant threat — it is a pressing reality for the borrowers in our crop and livestock portfolio. We strive to provide them with peace of mind, knowing they are financially protected against climate-related disasters, ensuring the survival of their crops and livestock.” He further noted that the Climate Shock Insurance aligns with the Bank’s mission to be a trusted financial partner for rural communities, reinforcing its commitment to supporting sustainable development goals in regions most vulnerable to climate change.
Mobilink Bank is a forward-thinking and future-ready organization committed to addressing the pressing needs of Pakistan’s agriculture sector, which employs over 40% of the country’s labor force. Mobilink Bank safeguards small-scale farmers and livestock owners by partnering with leading insurance providers and providing access to reliable, climate-specific insurance products. The introduction of Climate Shock Insurance represents a milestone in the Bank’s ongoing efforts to offer sustainable solutions that protect and empower Pakistan’s agricultural workforce.
Mobilink Bank is part of the VEON group, a global digital operator that provides converged connectivity and digital services to nearly 160 million customers in six dynamic markets that are home to 7% of the world’s population.
