Pakistan addresses the climate challenge by launching the first-ever Green Sukuk.
Pakistan’s first-ever Green Sukuk bond, intended to finance ecologically sustainable projects, has been formally unveiled by Federal Minister for Finance and Revenue Muhammad Aurangzeb.
The finance minister commended the PSX staff in a video speech to the Pakistan Stock Exchange (PSX), noting that the market finished at a record high, indicating rising investor confidence. He underlined that the Green Sukuk is an important step in Pakistan’s fight against climate change, which is one of the biggest risks the nation faces.
Aurangzeb emphasized recent meetings with foreign investors in London and Washington, pointing out that the world is happy with Pakistan’s growing macroeconomic stability. He attributed this to increased foreign exchange reserves, improved inflation control, and other favorable economic indicators.
In order to guarantee a thorough and forward-looking financial strategy, he continued, budget preparations for the fiscal year 2025–2026 are currently under way, with input from a variety of stakeholders.
The minister also recommended following Malaysia’s lead in green economic growth and emphasized the significance of sustainable funding. He affirmed that in order to lessen Pakistan’s environmental effect, attempts are being made to obtain international climate financing.
Aurangzeb praised the nation’s achievements and pointed out that Thanksgiving Day is being celebrated with great fervor across the country, signifying a rise in national hope in the environmental and economic spheres.
Separately, Aurangzeb reaffirmed that by June 2025, Pakistan intends to issue its first Panda Bond on the Chinese capital markets. Pakistan hopes to raise about $200 million through this bond, strengthening its financial connections with Chinese investors, he disclosed in an interview with a global media outlet.
With a particular emphasis on maintaining long-term stability in the balance of payments, this program is a component of the government’s larger plan to shift Pakistan’s economy toward export-led growth.
Sukuk bonds
