Pakistan's first-ever PKR-denominated green bond launched

In a landmark step toward sustainable finance, Parwaaz Financial Services Limited (PFSL), a subsidiary of Karandaaz Pakistan, has launched Pakistan’s first-ever PKR-denominated Green Bond — marking the country’s initial foray into climate-linked financial instruments listed on the Pakistan Stock Exchange.

The PKR 1 billion Green Bond, issued under the Parwaaz Green Action Bond initiative, is backed by several major financial institutions — such as Bank Alfalah, Bank of Khyber, Allied Bank, Pak Brunei Investment Company Ltd., Pak China Investment Company Ltd., Pak Libya Holding Company Ltd., Pak Oman Investment Company, Saudi Pak Industrial & Agricultural Investment Company Ltd., and Al Falah Insurance — and seeks to channel capital into environmentally sustainable sectors like renewable energy and clean transport.

“This Green Bond is a testament to our commitment to fostering an investment-friendly environment for climate initiatives,” said Federal Finance Minister Muhammad Aurangzeb at the launch. “Pakistan’s economic resilience depends on our ability to embrace sustainability in finance.”

The United Kingdom played a key role in supporting the launch, including through technical assistance provided under its Mobilising Institutional Capital Through Listed Product Structures (MOBILIST) programme. Karandaaz Pakistan itself was established with significant UK support.

British High Commissioner Jane Marriott called the bond “a brilliant example of how intelligent financial innovation can drive both private sector-led economic growth and greater climate resilience”. She noted that Pakistan needs $348 billion by 2030 to finance its green transition.

Waqas ul Hasan, CEO of Karandaaz Pakistan, described the initiative as “a defining moment for the entire financial sector of Pakistan”, emphasizing Karandaaz’s goal of aligning economic progress with environmental sustainability.