Federal Minister for Finance Muhammad Aurangzeb, has officially launched Pakistan’s inaugural Green Sukuk bond, designed to support environmentally responsible initiatives.
In a landmark move toward sustainable development, Pakistan has officially launched its first-ever Green Sukuk bond, aimed at financing environmentally responsible projects.
The Green Sukuk, issued by Pakistan Domestic Sukuk Company Limited (PDSCL)—a subsidiary of the Ministry of Finance—has a tenor of three years and will mature on May 19, 2028. Each Sukuk carries a face value of PKR 5,000 and is structured under a Shariah-compliant Ijarah model, offering returns based on rental income from underlying assets. The rate of return will be determined through a competitive bidding process, with margins set above a defined benchmark.
In a video message to the Pakistan Stock Exchange (PSX), Aurangzeb congratulated the PSX team as the market reached an all-time high—an indicator of growing investor confidence.
Aurangzeb described the bond as a milestone in Pakistan’s efforts to combat climate change, calling it “one of the most serious challenges” facing the nation. He cited positive signals from recent meetings with global investors in Washington and London, who responded favorably to Pakistan’s improving economic indicators, including better inflation control and growing foreign reserves.
The finance minister also emphasized the need for sustainable finance models, suggesting Pakistan follow in Malaysia’s footsteps for green economic development. He confirmed that the government is actively seeking international climate finance and continues work on the 2025–26 federal budget with input from diverse stakeholders.
In a separate development, Aurangzeb reaffirmed plans to launch Pakistan’s first Panda Bond in Chinese capital markets by June 2025, aiming to raise $200 million. This aligns with the government’s broader vision of export-led, environmentally sustainable economic growth.
