As one of the top ten countries most vulnerable to climate change, Pakistan faces considerable climate-related risks. This vulnerability is further intensified by the country's strong dependence on agriculture. Rising temperatures and extreme weather events are projected to diminish yields, disrupt growing seasons, exacerbate crop losses, and constrain market access. This poses significant challenges, especially for smallholder farmers who make up 90 per cent of the agricultural workforce. These farmers lack the resources to adapt to climate risks, making them highly vulnerable and threatening the country's food security. 

The Acumen Climate Action Pakistan (ACAP) Fund aims to establish a USD 80 million climate adaptation-focused investment fund in Pakistan, providing patient capital to agribusinesses. The fund's goal is to improve the climate resilience of vulnerable farmers and their livelihoods by providing access to climate adaptation solutions for smallholder farmers. Additionally, a USD 10 million Technical Assistance envelope will provide targeted support to improve the viability of business models of investee companies and build overall climate resilience of smallholder farmers and the ecosystem. The project seeks to demonstrate a commercially viable business model, improve farmers' climate adaptive capacity, and catalyse capital towards Pakistan's national climate adaptation priorities in the vulnerable agriculture sector.