Pakistan to launch PKR 30 billion green bond within 2 months

Pakistan is set to launch a green bond amounting to PKR 30 billion within two months — which would likely be routed through Pakistan Stock Exchange —fulfilling one of the key conditions for acquiring climate resilience funding from International Monetary Fund.

The government has been speedily working on the green bonds-climate pledge funding aimed to sponsor clean energy projects.

Last month, it approved issuance of green bonds which would be placed by Parwaaz Financial Services Ltd., or PFSL, a subsidiary of Karandaaz Pakistan.

The first bond amounting to PKR 30 billion would be sold through Pakistan Stock Exchange, sources close to the Ministry of Finance said on Friday.

The issuance of the bonds has been one of the key conditions under the International Monetary Fund’s Resilience and Sustainability Facility. Last month, the IMF approved funding amounting to $1.3 billion under climate financing which would be payable in 28 months.

Last month, Finance Minister Muhammad Aurangzeb said the initiative reflects Pakistan’s commitment to building an investment-friendly environment for climate-related ventures. He said that addressing climate challenges such as floods, pollution, and melting glaciers requires innovative financial solutions and urgent action.

He added that Pakistan’s economy must embed sustainability in its financial systems to ensure long-term resilience. “The Green Action Bond represents a significant step toward attracting large-scale green investment and transforming the financial sector,” he said.

Aurangzeb also referred to Pakistan’s discussions with the IMF under its Resilience and Sustainability Facility, aimed at securing long-term climate financing. He noted the IMF’s response was encouraging, marking Pakistan’s first formal engagement on climate financing with the Fund.