In a historic development, Pakistan has officially launched its first-ever domestic green Sukuk bond, marking a significant milestone in the country’s journey toward sustainable finance. The announcement made by Federal Finance Minister Muhammad Aurangzeb during a virtual address to a key ceremony held at the Pakistan Stock Exchange (PSX).
Green Sukuk Bond Worth Rs. 30 Billion Issued
The Rs. 30 billion green Sukuk bond formally issued on Friday at the PSX. It structured under Ijarah (lease-based) financing and carries a three-year maturity period with a floating interest rate. This bond is the first of its kind in Pakistan and has launched under the Sustainable Investment Sukuk Framework, aimed at promoting eco-friendly and socially responsible investments.
Domestic Debt and Investor Confidence
While addressing the event, Finance Minister Muhammad Aurangzeb revealed that Pakistan’s total domestic debt stands at Rs. 37 trillion, with Rs. 5 trillion (14%) currently based on Sukuk instruments. He emphasized that the green Sukuk issuance reflects increasing investor confidence in Pakistan’s economy and capital markets.
“This is a proud moment for Pakistan and the Pakistan Stock Exchange,” said the finance minister, highlighting the growing global interest in sustainable finance.
Global Investor Interest & Economic Reforms
Referring to his recent visit to London, Aurangzeb mentioned that international investors are showing a strong interest in Pakistan, particularly in the context of economic stability and reform initiatives in sectors like energy, taxation, and state-owned enterprises.
He stressed that the best time for PSX and Pakistan is yet to come, citing encouraging discussions with global stakeholders.
Budget Consultation for FY 2025–26
The finance minister also shared that the government is actively consulting with relevant stakeholders to design a promising budget for the fiscal year 2025–26. The focus will be on encouraging investment, promoting financial inclusion, and sustaining economic stability.
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