Islamabad: The Government of Pakistan has officially launched its first-ever Green Sukuk, marking a significant advancement in the country’s sustainable finance landscape.
This landmark initiative aims to channel investments into environmentally responsible projects while simultaneously driving economic growth and innovation in Islamic finance.
The Green Sukuk represents a transformative development in Pakistan’s sukuk market, aligning the country’s financial practices with international standards in green finance.
The inaugural issuance, estimated between PKR 20 billion and PKR 30 billion, will be auctioned, with the Pakistan Stock Exchange (PSX) facilitating its listing and promotion to a wide range of investors.
Structured under the newly approved Sustainable Investment Sukuk Framework, the Green Sukuk initiative is supported by Joint Financial Advisors including Meezan Bank Limited, Bank Alfalah Limited, Dubai Islamic Bank Pakistan Limited, and Bank Islami Pakistan Limited.
This framework was endorsed by the Cabinet and is a key component of Pakistan’s Vision 2028, particularly its ambition to move toward an interest-free economy.
The Green Sukuk is designed to fund projects that address climate change and environmental sustainability.
It reflects the government’s commitment to integrating sustainability into the heart of economic policymaking.
Investors will now have the opportunity to back green initiatives while contributing to the resilience and expansion of Pakistan’s financial markets.
This historic launch is expected to attract new investors, diversify financing options, and reinforce Pakistan’s path toward a greener and more sustainable economic future.
Pakistan Islamic Dbet Makret
Pakistan’s sukuk market has experienced significant growth in recent months, driven by strategic government initiatives and increasing investor interest in Shariah-compliant financial instruments.
Since December 2023, the government has raised approximately PKR 2.25 trillion through 18 Ijarah sukuk auctions, utilizing the Pakistan Stock Exchange (PSX) platform for issuance, registration, trading, settlement, and transfer of Shariah-compliant Government Debt Securities (GDS).
Read More: Govt to Raise Rs52bn via Green Sukuk for Clean Energy
This shift from over-the-counter transactions to a more transparent and efficient capital market system has enhanced investor confidence and market liquidity.
The Securities and Exchange Commission of Pakistan (SECP) has further supported market development by issuing concept papers to promote the listing of short-term sovereign and corporate sukuk instruments.
These initiatives aim to provide a broader range of Shariah-compliant financial solutions, catering to the needs of both issuers and investors.
Additionally, the launch of Pakistan’s first Green Sukuk represents a significant step toward integrating environmental sustainability into the financial sector.
Also Read: Government Raises Rs. 119 Billion in PSX Sukuk Auction
This move aligns with global trends and positions Pakistan as a leader in sustainable Islamic finance.
Overall, Pakistan’s sukuk market is evolving into a dynamic and integral component of the country’s financial landscape, offering diverse investment opportunities while adhering to Islamic principles.
