Mobilink Bank launches climate insurance for farmers in Pakistan

Mobilink Bank, a leader in digital microfinance in Pakistan, has launched a Climate Shock Insurance product designed to safeguard small and medium-scale farmers and livestock owners against the increasing threats of climate change. This initiative aims to provide financial security by compensating for losses to crops and livestock caused by unpredictable climate events, thereby helping farmers sustain their livelihoods amid escalating weather instability.

The insurance offering is incorporated into the bank’s existing agricultural lending and livestock programs. This integration facilitates easier access to insurance coverage and expedites the payout process, which is typically slower with conventional disaster relief methods. This move by Mobilink Bank underscores its commitment to environmental, social, and governance (ESG) principles, focusing on resilience and sustainability within the agricultural sector.

The agricultural sector, crucial to Pakistan’s economy, is highly susceptible to climate change impacts. Experts predict an 8% to 10% drop in agricultural productivity by 2040 due to climate variability. Mobilink Bank’s Climate Shock Insurance aims to mitigate these impacts by offering financial relief for damages caused by extreme weather conditions such as droughts, heavy rainfall, and crop diseases. The insurance covers key crops, including wheat and rice, and provides protection for livestock against natural disasters and diseases.

Atta-ur-Rehman, Chief Business Officer at Mobilink Bank, emphasized the urgency of addressing climate threats. “The climate crisis is not a future concern but a current reality, especially for our clients involved in agriculture,” he stated. “Our goal is to give them the assurance that they are financially shielded from climate-related adversities, which secures the continuity of their farming and livestock operations.” He also mentioned that the insurance aligns with the bank’s objective to serve as a reliable financial ally to rural communities, further supporting sustainable development goals in areas most affected by climate change.

Employing over 40% of the national workforce, Pakistan’s agricultural sector is pivotal yet vulnerable to climate fluctuations. By collaborating with prominent insurance providers, Mobilink Bank aims to offer dependable, climate-adapted insurance solutions. The introduction of Climate Shock Insurance marks a significant step in the bank’s continuous effort to deliver sustainable options that both protect and empower the agricultural community in Pakistan.

Mobilink Bank is part of the VEON group based in Amsterdam, a global digital operator serving approximately 160 million customers across six dynamic markets, representing 7% of the world’s population.