Green Banking Adoption in Energy-Deficit Economies: A Systematic Review of Drivers and Barriers in Pakistan

Abstract

The present systematic review is investigating the adoption of green banking in energy-deficit economies with an emphasis on drivers and barriers in Pakistan, synthesizing the evidence on the topic to be reviewed based on 20 validated articles published between 2020 and 2025. The review in the area classifies the significant technological, regulatory and behavioral determinants of adoption, implements implementation challenges and measures policy effectiveness. The results of analysis indicate that regulatory pressure and environmental responsibility lead to adoption but still have a number of barriers such as lack of awareness, lack of green financial products, regulatory fragmentation, and high cost of compliance. The review concludes that the situation of energy deficit in Pakistan: fossil fuels supply 70 percent of the energy, and the share of renewable energy sources in the national budget of bank funding is less than 5 percent of the overall bank loaning practices imposes specific problems on the scalability of green banking. To policymakers, it has proven that co-ordinated strategies that incorporate regulatory requirements, capacity building, awareness-raising and innovative financing methods such as green bonds and blended finance can be effective. Two detailed tables are provided in the article: Table 1 shows all the confirmed sources with bibliographic description and verification reports; Table 2 consolidates the data on drivers and barriers on energy-deficit economies with particular reference to Pakistan. The review is useful in the realization of sustainable finance adoption in developing economies and has practical guidelines on how to jumpstart green banking in the same setting.

Keywords: Green banking, energy-deficit economies, Pakistan, sustainable finance, adoption barriers.