Pakistan issues Rs30bn Green Sukuk to fund renewable projects
- Sukuk reflects growing investor confidence in Pakistan’s economy, says Aurangzeb
Pakistan on Friday launched its first Sovereign Domestic Green Sukuk worth Rs30 billion at the Pakistan Stock Exchange (PSX), pushing the share of Shariah-compliant financing in the country’s total domestic debt to 14%, announced Finance Minister Muhammad Aurangzeb.
Pakistan’s domestic debt stands at Rs37 trillion, of which Rs5 trillion—approximately 14%—is Sukuk-based debt.
Addressing the event via video link, Aurangzeb said the Sukuk reflects growing investor confidence in Pakistan’s economy and the capital market. Based on an Ijarah structure, the three-year Sukuk will carry a variable rental rate and is being issued under the Sustainable Investment Sukuk framework.
The bidding process was ongoing on Friday morning at the time of filing this report. The Sukuk will be listed and tradable on the PSX.
Proceeds will be utilised to fund eligible green energy projects, including the construction of three dams.
Meezan Bank is acting as the lead Joint financial advisor, along with Dubai Islamic Bank, Bank Islami, and Alfalah Islamic.
The auction is open to local retail, institutional, and corporate investors, as well as to non-resident Pakistanis (NRPs), Roshan Digital Account holders, and foreign investors.
The launch coincided with Youm-e-Tashakur (Thanksgiving Day), as the PSX opened after reaching an all-time high of 119,961.91 points a day earlier.
“The best is yet to come for both PSX and Pakistan,” Aurangzeb said, highlighting investor optimism, including among global investors he met recently in London.
The finance minister noted that international investors have shown interest in Pakistan, provided the country maintains macroeconomic stability and continues reforms in energy, taxation, and state-owned enterprises.
Aurangzeb added that the government is in consultation with stakeholders to present a promising budget for FY26.
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