‘Need to rely on local markets to finance climate-resilient infrastructure in Pakistan’

ISLAMABAD: “Donor aid is drying up — we must rely on local markets to finance climate-resilient infrastructure,” Maheen Rahman, CEO of InfraZamin stressed during a seminar on Green Financing via Debt Capital Markets here at federal capital.

She emphasized the urgency to tap the domestic capital while stating, “With Pakistan ranks below on the global Human Development Index, especially lagging in health, gender, and climate indicators, we need to explore and push our domestic financing capabilities.”

According to the 2023–2024 Human Development Report, Pakistan scored 0.540 on the Human Development Index (HDI), placing it in the “low” human development category, ranking it 164th out of 193 countries globally. This position is alarming as it reflects critical deficiencies in health, education, and living standards.

Maheen Rahman warned that without urgent investment in human capital and climate-resilient infrastructure, Pakistan risks deepening socio-economic vulnerabilities and falling further behind regional peers. She also underscored that a robust green financing framework could attract private investment, boost banking and capital markets, and directly support sectors like health through sustainable development.

The seminar, attended by dignitaries from private-public banking and finance sectors, explored how capital markets can expand green infrastructure financing, fostering initiatives that may carry far-reaching implications for national health and the environment. Industry leaders outlined potential approaches to innovative financing mechanisms including rupee bonds and credit guarantees to facilitate investment in sustainable green projects. They also noted that Pakistan's current position in green bond issuance remains significantly lower compared to its regional peers, with countries like the UAE, Indonesia, and India taking the lead in this space.

Boo Hock Khoo, Chairman of Board InfraZamin, noted, “Development of green financing via local capital markets is a needful step forward for the country. InfraZamin’s efforts in providing credit guarantees on bond instruments are key to building investor confidence and enabling scalable, climate-aligned infrastructure in Pakistan.”

The seminar also featured keynote addresses and panel discussions with speakers, including Jo Moir, Development Director, British High Commission Islamabad, Philip Skinner, Origination Lead of Nature at PIDG, and Waqas ul Hasan, CEO Karandaaz Pakistan. The discussions shed light on the importance of innovative financial instruments and the need for enabling regulatory frameworks in fostering infrastructure development.

The stakeholders present at the occasion, concluded with a commitment to incorporate sustainability in financial systems and vowed to leverage capital markets as a catalyst to uplift environment and public health outcomes.

Copyright Business Recorder, 2025