Pakistan’s government unveiled its first Green Sukuk, which will raise over Rs50 billion in two phases for hydropower projects under the Sustainable Investment Sukuk Framework.
The innovative bond, listed on the PSX, aims to drive green financing and sustainable development.
On May 7, 2025, Pakistan’s Ministry of Finance announced the launch of its inaugural Green Sukuk, targeting Rs50 billion in two phases to fund hydropower projects. The first phase, valued between Rs20-30 billion, will be auctioned via the Pakistan Stock Exchange (PSX), with joint advisors Meezan Bank, Bank Alfalah, Dubai Islamic Bank, and Bank Islami, per The Express Tribune.
The Pakistan Debt Management Office highlighted the sukuk’s role in revolutionising the market by channelling funds into sustainable projects, aligning with global green financing standards.
Building on Wapda’s 2021 Rs6.5 billion Green Sukuk for Tarbela dam, this program supports three small dam-cum-hydropower projects Garuk (Balochistan), Nai Gaj (Sindh), and Shagarthang (Gilgit-Baltistan) under the Sustainable Investment Sukuk Framework (SISW), which was approved last month, per Business Recorder.
The Green Sukuk, a “beacon of innovation,” supports Pakistan’s sustainable development goals, reducing environmental impact while attracting diverse investors. Deepening financial markets accelerate the shift to a green economy, with analysts on Bloomberg noting its potential to draw global ESG funds despite India-Pakistan tensions.
