Pakistan all set to 'issue' green bonds worth Rs30b

KARACHI: Pakistan is set to issue green bonds worth Rs30 billion at the Pakistan Stock Exchange (PSX), ARY News reported citing sources.

According to sources, the decision to issue green bonds is part of the government’s efforts to secure the first tranche of Resilience and Sustainability funds.

Sources within Finance Ministry revealed that the decision was made in consultation with the International Monetary Fund (IMF) and the funds raised will be used for climate change projects.

Additionally, Pakistan plans to issue panda bonds worth $300 million in the Chinese market in November or December next fiscal year.

Earlier, Finance Minister Muhammad Aurangzeb says Pakistan plans to launch Panda Bond by June this year with an aim to enhance country’s presence in China’s capital markets.

Also read: Panda Bonds: Bridging Global Markets and China’s Growth

In an interview with international news channel, he said through the issuance of the Panda Bond, Pakistan intends to raise approximately two hundred million US dollars from Chinese investors.

The Minister emphasized that this step is part of a broader strategy to transition Pakistan’s economy towards export-driven growth, with a focus on achieving sustainability in the country’s balance of payments.

He also highlighted the critical importance of the second phase of the China-Pakistan Economic Corridor.

Muhammad Aurangzeb said that second phase of CPEC would attract more Chinese companies and also open avenues for increased investments.