Pakistan launches PKR 30 billion green bonds

Pakistan has launched Green Sukuk bonds worth PKR 30 billion, bringing Islamic bonds to about 14% of the country’s overall bond portfolio.

Speaking at the launch ceremony, Finance Minister Mohammad Aurangzeb said the government is exploring innovative funding avenues both domestically and internationally to diversify its sources and support economic resilience.

Pakistan, he said, has held constructive engagements with multilateral and bilateral partners. He also expressed satisfaction with the country’s progress toward macroeconomic stability.

“Work is underway on the upcoming federal budget, with a strong focus on pension reforms and debt servicing,” Aurangzeb said.

He noted that the International Monetary Fund’s recent approval of the first review under Pakistan’s $7 billion loan program and the $1.4 billion Resilience and Sustainability Facility was a major achievement.

Pakistan Stock Exchange Chairperson Dr. Shamshad Akhtar said the country plans to issue both Green Sukuks and Green Bonds.

She highlighted that climate adaptation needs are projected at $348 billion by 2030, a figure well beyond the reach of traditional financing sources.

Green Sukuks, she said, are seen as a gateway to the $4 trillion Islamic finance and $2.5 trillion green bond markets, adding that Pakistan has the potential to become a regional leader in Sharia-compliant green finance.

Despite its heavy reliance on fossil fuels—60% of Pakistan’s energy mix—Green Sukuks could play a critical role in supporting the transition to renewable energy, she said.