Islamabad, Apr 22, 2025: The federal government has granted approval for its inaugural issuance of green Sukuk bonds under a newly established policy aimed at securing funds for eco-friendly and socially responsible initiatives.
The authorities are expected to generate approximately Rs52 billion from the offering and will allocate the funds to complete three major energy-related infrastructure projects.
The authorities will use the raised capital to finalize ongoing development works on the Garuk Dam in Balochistan, Nai Gaj Dam in Sindh, and the Shagarthang hydropower plant in Skardu.
These ventures are currently experiencing a financial shortfall and collectively require an additional Rs52 billion to reach completion.
These Sukuk bonds will be asset-backed, using tangible project assets as security.
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They structure them to align with global Sustainable Development Goals (SDGs) and support Environmental, Social, and Governance (ESG) principles.
Officials from the Ministry of Finance have confirmed that this step aligns with Pakistan’s vision for a greener, more resilient economy.
Initial estimates suggest that the first tranche of Sukuk bonds may range around Rs30 billion.
This launch forms part of a wider strategy to expand Islamic financing mechanisms for funding national development aligned with Pakistan’s Climate Change Policy and National Adaptation Plan.
Located in the Kharan district of Balochistan, the Garuk Dam project has encountered budget escalations due to delays and increased construction scope, with the revised cost nearing Rs28 billion.
Similarly, the Nai Gaj Dam project in Sindh still requires an estimated Rs22 billion to reach full completion.
The government expects to invest Rs25 billion in the Shagarthang hydropower initiative, which will supply electricity to the Skardu region and nearby communities.
Authorities view the issuance of these green Sukuk bonds as a strategic move to bridge financing gaps in critical infrastructure projects and promote environmental sustainability.
The government intends to direct the funds toward clean energy and long-term ecological benefits.
An inter-ministerial committee comprising members from the Ministry of Finance, Planning, Climate Change, Economic Affairs, and the State Bank of Pakistan will supervise the evaluation and selection of projects.
The committee will prioritize new proposals that align closely with national sustainability objectives and global climate commitments.
