Pakistan will launch green bonds on the Pakistan Stock Exchange (PSX) in mid-May to raise Rs30 billion for sustainable projects, aligning with a $1.3 billion IMF Climate Resilience loan. The initiative, including Sukuk bonds for hydropower, underscores Pakistan’s commitment to environmental and economic progress.
The government plans to issue green bonds during the third week of May to finance eco-friendly initiatives, a key condition of the IMF’s 28-month, $1.3 billion Resilience and Sustainability Facility (RSF). Sources indicate the bonds will fund hydropower projects in Sindh, Balochistan, and Gilgit-Baltistan, including the Skardu Hydro, Balochistan Nai Gaj Hydro, and Sindh Hydro projects. Additionally, Rs30 billion in Sukuk bonds will support three hydropower developments.
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On May 9, the IMF Executive Board will review Pakistan’s Extended Fund Facility (EFF) and RSF, likely approving a $1.1 billion disbursement. Last month, Pakistan secured a staff-level agreement for the EFF’s first review and the new RSF, reinforcing its climate-focused financial strategy.
Backed by the IMF’s $1.3 billion climate loan, Pakistan’s green bonds mark a pivotal step toward sustainable development. By funding hydropower projects, the initiative blends environmental stewardship with economic resilience. Pakistan’s eco-friendly vision gains momentum as the May 9 IMF meeting nears.
