Islamabad aims to raise Rs30 billion to fund climate change projects and unlock crucial IMF financing.
Key Takeaways:
i) Pakistan will issue green bonds worth Rs30 billion to finance climate change projects.
ii) This issuance is linked to securing the first installment from the IMF’s RSF.
iii) The IMF has set conditions related to climate change project financing and completion for the release of funds.
Islamabad, Pakistan – April 12, 2025 – Pakistan is set to issue green bonds worth Rs30 billion through the Pakistan Stock Exchange (PSX) to finance projects aimed at mitigating the impacts of climate change. This move is also intended to secure the first installment from the International Monetary Fund (IMF) under its Resilience and Sustainability Facility (RSF).
The green bond, with a three-year maturity period, is being issued as part of a new 28-month arrangement with the IMF under the RSF. The IMF has stipulated that Pakistan must secure financing from various sources, both local and international, and ensure the successful completion of climate change-related projects to receive the initial disbursement from the RSF.
This initiative highlights Pakistan’s commitment to addressing climate change while also navigating its economic challenges. The funds raised through the green bonds will be directed towards projects designed to tackle the adverse effects of climate change, aligning with the goals of the RSF.
Pakistan has been increasingly active in the green finance sector. In March 2025, it launched its first rupee-denominated Green Bond, the Parwaaz Green Action Bond, to boost climate finance, aiming to fund sustainable projects and attract private sector investment. The Securities and Exchange Commission of Pakistan (SECP) has also issued guidelines for green bond issuance to facilitate this growing market.
The country is also collaborating with international organizations like the Green Climate Fund (GCF) on projects aimed at building resilience to climate change.
Pakistan’s efforts to combat climate change include various projects, such as the Ten Billion Trees Tsunami Programme and initiatives focused on climate-resilient urban development. The country is also collaborating with international organizations like the Green Climate Fund (GCF) on projects aimed at building resilience to climate change.
The IMF’s RSF provides longer-term financing to support countries undertaking reforms to reduce risks to their balance of payments stability, including those related to climate change.
