Pakistan launches first Green Sukuk Bond to bolster sustainable development

KARACHI: Federal Minister for Finance and Revenue Muhammad Aurangzeb announced the launch of Pakistan’s inaugural Green Sukuk bond, ARY News reported.

During a video address at the Pakistan Stock Exchange (PSX), Aurangzeb congratulated the PSX, noting that the stock market closed at a record high the previous day, signaling robust investor confidence.

The Green Sukuk bond, aimed at funding environmentally sustainable projects, marks a pivotal step toward addressing climate change, which Aurangzeb described as a significant threat to Pakistan.

The finance minister mentioned recent engagements with investors in Washington and London, stating that the global community is satisfied with Pakistan’s macroeconomic stability.

He attributed this to improvements in key economic indicators, including inflation control and foreign exchange reserves. Aurangzeb also revealed that preparations for the 2025-26 budget are in progress, with stakeholders actively contributing proposals to shape a robust fiscal plan.

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

Emphasizing the need for sustainable financing, Aurangzeb advocated adopting Malaysia’s model for green economic initiatives. He noted ongoing efforts to secure climate financing to mitigate environmental impacts.

The minister also mentioned that Pakistan is celebrating Thanksgiving Day with enthusiasm nationwide, reflecting optimism about the country’s economic and environmental strides.

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

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.