Pakistan to 'issue' Green Bonds in May for eco-friendly projects

ISLAMABAD: The government is set to issue green bonds in the Pakistan Stock Exchange (PSX) during the third week of May to fund environmentally friendly projects, ARY News reported citing sources.

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

Pakistan aims to raise Rs30 billion through the PSX to address funding challenges for eco-friendly projects, including the issuance of Rs30 billion in Sukuk bonds for three hydropower projects, sources revealed.

Sources further said that the green bonds will finance hydropower projects in Sindh, Balochistan, and Gilgit-Baltistan, specifically the Skardu Hydro, Balochistan Nai Gaj Hydro, and Sindh Hydro projects.

Under the IMF program, Pakistan is expected to receive $1 billion on May 9, sources added.

It is worth mentioning here the International Monetary Fund’s (IMF) Executive Board meeting is scheduled for May 9, with Pakistan listed on the official agenda.

During the meeting, the IMF board is expected to approve a disbursement of $1.1 billion for Pakistan under the ongoing financial program.

According to IMF statement, first Review under the Extended Arrangement under the Extended Fund Facility, the request for modification of performance criteria, and the request for an arrangement under the Resilience and Sustainability Facility are scheduled to take place on May 9.

Meanwhile, Pakistan also secured $1.3 billion in climate financing from the International Monetary Fund.

Last month, Pakistan and the International Monetary Fund reached a staff-level agreement on the first review under Pakistan’s 37-month $7bn Extended Fund Facility (EFF) and on a new 28-month $1.3bn arrangement under the Resilience and Sustainability Facility (RSF), the federal government and the IMF confirmed.