Pakistan has launched its first-ever Green Sukuk, a Shariah-compliant bond to fund eco-friendly projects, marking a historic leap in sustainable finance. Announced on May 7, 2025, by the Ministry of Finance, the inaugural issuance of PKR 20-30 billion will be auctioned via the Pakistan Stock Exchange (PSX), targeting renewable energy, clean transportation, and climate-resilient infrastructure. This aligns with Pakistan’s Vision 2028 for an interest-free, green economy.

Structured under the Sustainable Investment Sukuk Framework, the program is backed by financial advisors like Meezan Bank and Dubai Islamic Bank. It aims to deepen capital markets, attract global ESG investors, and reduce environmental impact. Building on WAPDA’s 2021 PKR 6.5 billion Green Sukuk for hydropower, this initiative will fund projects like Garuk, Nai Gaj, and Shagarthang dams, raising over PKR 50 billion in two phases.

The Green Sukuk taps into the growing global demand for ethical investments, with the green bond market surpassing $500 billion in 2023. By merging Islamic finance principles with sustainability, Pakistan positions itself as a leader in the $30-50 billion green sukuk market by 2025. Analysts highlight its potential to draw international funds despite regional tensions, fostering green jobs and climate resilience.

This bold move underscores Pakistan’s commitment to global climate goals and sustainable development, revolutionizing its financial landscape. The Green Sukuk is a beacon of innovation, inviting investors to shape a resilient, eco-conscious future.