Pakistan Announces First Ever Green Sukuk Bonds

In a landmark move for sustainable finance, Pakistan’s Ministry of Finance today announced the country’s first-ever issuance of Green Sukuk bonds.

These Sharia-compliant instruments, with an initial offering of 20-30 billion Pakistani rupees, will be auctioned through the Pakistan Stock Exchange to fund environmentally sustainable infrastructure projects. The initiative falls under the Cabinet-approved Sustainable Sukuk Framework and aligns with Pakistan’s Vision 2028 development roadmap.

The Green Sukuk represents a strategic effort to bridge the funding gap for climate-resilient projects while offering Islamic investors an ethical investment vehicle. Proceeds will be exclusively allocated to renewable energy initiatives, clean transportation systems, and other certified green infrastructure developments. Several major financial institutions have been appointed as joint advisors for the issuance, which is expected to take place within the next two months.

“This groundbreaking instrument demonstrates our dual commitment to environmental responsibility and financial innovation,” stated a Finance Ministry spokesperson. “By channeling capital toward sustainable development, we’re creating win-win opportunities for investors and the planet.” The issuance positions Pakistan among a select group of nations, including Malaysia and Saudi Arabia, that have successfully leveraged Islamic finance for climate action.

Market analysts anticipate strong demand from both domestic and international investors seeking ESG-compliant assets. The move is expected to deepen Pakistan’s debt capital markets while supporting the nation’s transition to a low-carbon economy. With global green Sukuk markets exceeding $30 billion, Pakistan’s entry marks a significant milestone in the growing convergence of Islamic finance and sustainable development.