Research Article 15
Journal of Finance & Economics Research - Volume 11, Issue 1 2026
By Ramish Fatima, Sonia Hassan
https://doi.org/10.20547/jfer2611101
Keywords: Sustainable finance, Female empowerment, Political stability, Institutional quality, Pakistan

Sustainable finance (SF) has become the most important factor of modern financial systems as growing evidence suggests that traditional finance often overlooks environmental damage, social inequality, long-term systemic risks and market efficiency, a concern that is particularly important in developing countries such as Pakistan, where institutional constraints, environmental challenges and energy inefficiency pose significant challenges to long-term financial sustainability. Therefore, this study investigates whether the role of female empowerment (FE) helps in iadvancing sustainable finance (SF) in Pakistan with the moderating effect of political stability (PS). The study uses annual time-series data from 1991 to 2024 and employs a static econometric model and robustness analysis. The findings reveal a strong and statistically significant positive relationship between FE and SF, indicating that improvements in FE plays a critical role in enhancing sustainability-oriented financial outcomes. Moreover, PS significantly strengthens this relationship, highlighting the importance of institutional quality in translating FE into effective SF development. Robustness checks confirm the stability and consistency of the results. This study contributes novel evidence from a developing economy such as Pakistan by integrating FE and PS into SF analysis, offering important implications for policymakers, regulators and financial institutions seeking to design inclusive and resilient sustainable finance frameworks.

Submission Date: 2 Feb, 2026 Reviews Completed: 18 May, 2026
Acceptance Date: 5 Jun, 2026 Publication Date: 30 Jun, 2026