The government of Pakistan is set to launch its first sustainable investment asset-backed Sukuk bonds, aiming to raise Rs30 billion. This funding will support three clean energy projects with a total completion cost of Rs 52 billion. This initiative was approved in April 2025 under the Sustainable Investment Sukuk Framework and promotes Islamic finance principles and sustainability objectives.
The initial Pakistan Green Sukuk will support:
- Garuk Dam (Balochistan): It needs Rs5 billion to complete, and due to delays, costs will rise to Rs28 billion.
- Nai Gaj Dam (Sindh): Requires Rs22 billion, with costs escalating since its 2005 start.
- Shagarthang Hydropower Project (Skardu): Seeks Rs25 billion to generate 26 MW for Skardu’s electrification.
These projects, managed by the Water and Power Development Authority (WAPDA), align with Pakistan’s National Climate Change Policy and Sustainable Development Goals (SDGs).
The Sukuk Framework facilitates funding for green, social, and sustainable projects. These include renewable energy initiatives such as solar, wind, hydropower, energy-efficient infrastructure and low-carbon transportation. A joint committee, comprising representatives from the Ministries of Finance, Planning, and Climate Change, will assess projects to ensure they have measurable environmental and social benefits.
Read: SECP Introduces Sukuk Ijarah to Boost Islamic Finance in Pakistan
This innovative Green Sukuk provides a practical financing model, attracting both domestic and international investors to support Pakistan’s transition to clean energy and infrastructure development. Future issuances will finance additional sustainable initiatives.
