Green Sukuk makes debut with Rs20-30bn issue

ISLAMABAD: The government is proud to announce a major milestone in the nation’s sustainable finance journey with the launch of its first Green Sukuk, said a press release.

This pioneering financial instrument is set to revolutionize Pakistan’s Sukuk market by channeling investments into environmentally sustainable projects while fostering economic growth.

The Green Sukuk marks a pivotal step in aligning Pakistan’s financial markets with global best practices in green financing. The inaugural issuance, ranging between PKR 20 billion and PKR 30 billion, will be conducted through an auction process, with the Pakistan Stock Exchange (PSX) playing a central role in listing and promoting this innovative instrument to investors.

Rs20bn Green Sukuk likely in Dec

The Green Sukuk Program has been structured with the support of the Joint Financial Advisors: Meezan Bank Limited, Bank Alfalah Limited, Dubai Islamic Bank Pakistan Limited, and Bank Islami Pakistan Limited.

The Sustainable Investment Sukuk Framework, approved by the Cabinet, lays the foundation for the landmark debut of the Green Sukuk. This initiative is closely aligned with Pakistan’s Vision 2028, particularly its goal of transitioning to an interest-free economy. It reflects the government’s strong commitment to leveraging financial markets in support of sustainable development.

The Green Sukuk is a beacon of innovation and a testament to our unwavering commitment to fostering sustainable development and reducing our environmental impact. The Green Sukuk offers investors a unique opportunity to support environmentally friendly projects while promoting economic growth.

This is a historic step toward integrating sustainable finance into the core of Pakistan’s development strategy. The Green Sukuk will attract a broader investor base, deepen our financial markets, and accelerate the country’s transition to a green and resilient economy.

Copyright Business Recorder, 2025