Pakistan to launch first-ever Green Sukuk to finance sustainable development

Pakistan has taken a major leap towards climate-conscious financing with the upcoming launch of its inaugural Sovereign Domestic Green Sukuk, aligning itself with a global movement towards sustainable economic growth, according to Advisor to the Finance Minister Khurram Schehzad.

Schehzad made the announcement while chairing a high-level briefing and interactive session on the Green Sukuk at the Pakistan Stock Exchange (PSX) in Karachi. The session was jointly organized by the Ministry of Finance and the PSX and attended by notable figures, including Dr. Shamshad Akhtar, chairperson of the PSX; Farrukh Sabzwari, MD & CEO PSX; and senior officials from the Debt Management Office.

“The Green Sukuk marks a pivotal step for Pakistan to join the ranks of climate-conscious nations,” Schehzad said. “We are committed to attracting green investment and ensuring long-term economic sustainability through responsible financial instruments.”

He highlighted that Pakistan had recorded a fiscal surplus for the first time in 24 years — an achievement he credited to the Debt Management Office. Schehzad also pointed to sweeping structural reforms underway across the public sector, including the consolidation of 43 ministries and departments, ongoing privatization efforts, and improvements in the energy sector that have already led to lower prices.

The advisor also revealed that global impact funds have expressed keen interest in the Green Sukuk, and reassured attendees that technical hurdles related to securities transfers in the financial sector would be resolved soon.

Addressing the event, Dr. Akhtar noted the evolution and innovation in Islamic finance and called for broader participation and advocacy to build awareness around Sukuk instruments. “Engagement with institutions and universities is essential to promote financial education in this space,” she added.

PSX CEO Farrukh Sabzwari echoed the sentiment, highlighting the exchange’s efforts to boost financial literacy through creative strategies, including gamification tools aimed at increasing public awareness of green financial products.

Eraj Hashmi, Director Debt at the Ministry of Finance, emphasized that the Debt Management Office is committed to ensuring sustainability and flexibility in public debt management through a balanced portfolio of instruments and maturities.