KARACHI: Pakistan has officially launched its first Green Sukuk bond, a significant step toward financing environmentally sustainable projects and combating climate change. The announcement was made by Federal Finance Minister Muhammad Aurangzeb via a video address at the Pakistan Stock Exchange (PSX), which had just closed at a record high, signaling strong investor confidence.
Aurangzeb emphasized the importance of sustainable finance, citing climate change as a major threat to Pakistan. He shared that international investors, particularly in Washington and London, have shown satisfaction with the country’s macroeconomic stability, including improved inflation control and strengthened foreign exchange reserves.
He also called for adopting Malaysia’s green financing model and highlighted ongoing efforts to secure climate financing to support Pakistan’s environmental goals.
The Green Sukuk initiative comes as part of a broader strategy that includes the upcoming launch of a Panda Bond by June 2025, aimed at raising $200 million from Chinese investors and expanding Pakistan’s presence in China’s capital markets.
Aurangzeb noted that preparations for the 2025–26 federal budget are underway, with input from key stakeholders to ensure a strong and sustainable economic framework.
