Pakistan launches Green Sukuk for sustainable finance

ISLAMABAD: The Government of Pakistan has achieved another milestone in its sustainable finance journey with the launch of its first Green Sukuk Pakistan.

This groundbreaking financial tool is established to revolutionise the country’s sukuk market by channelling investments into environmentally sustainable projects while developing economic growth.

The initial issuance, which ranges between Rs20 billion and Rs30 billion, will be conducted through an auction process, with the Pakistan Stock Exchange (PSX) playing a central role in listing and promoting this innovative instrument to investors.

The Green Sukuk Pakistan aligns the financial markets of the nation with global best practices in green financing.

The Green Sukuk Program is structured with the help of Meezan Bank Limited, Bank Alfalah Limited, Dubai Islamic Bank Pakistan Limited, and Bank Islami Pakistan Limited. While it is backed by the Sustainable Investment Sukuk framework, it is approved by the Cabinet.

This initiative is closely associated with Pakistan’s Vision 2028, mainly, it aims to transition to an interest-free economy.

The Green Sukuk Pakistan is likely to fascinate a broader investor base, extend financial markets, and boost the country’s transition to a green and resilient economy.

Investors can now avail exclusive opportunity to support environmentally friendly projects while endorsing economic growth.

Pakistan is one of the most vulnerable countries to climate change and environmental pollution, making this initiative crucial for sustainable development.

The International Monetary Fund (IMF) has expressed willingness to provide additional funding for Pakistan’s green initiatives.

This significant step takes sustainable finance into the core of the development strategy of Pakistan, strengthening the government’s commitment to reducing environmental impact and fostering economic resilience.

Earlier, the government was set to issue green bonds in the Pakistan Stock Exchange (PSX) during the third week of May to fund environmentally friendly projects.

According to sources, this initiative was a key condition of the International Monetary Fund’s (IMF) new $1.3 billion Climate Resilience loan program, which spanned 28 months.