Islamic financial instrument aims to attract investments in environmentally friendly projects, aligning with Vision 2028.
Key Takeaways:
- Pakistan’s Finance Ministry introduces its inaugural Green Sukuk, a Shariah-compliant instrument.
- The Sukuk targets funding for renewable energy, clean transport, and climate-resilient infrastructure.
- The initiative aligns with Pakistan’s goal of transitioning to an interest-free economy by 2028.
Islamabad, Pakistan – Pakistan’s Finance Ministry has announced the launch of its first-ever Green Sukuk, a Shariah-compliant financial instrument designed to attract investments in environmentally sustainable projects. This initiative aims to fund projects related to renewable energy, clean transportation, and climate-resilient infrastructure, merging Islamic finance principles with environmental objectives to appeal to ethically minded investors.
According to the ministry, this move represents a significant step in aligning Pakistan’s financial markets with global best practices in green financing. An auction will be held for the inaugural Green Sukuk issue, with total funds expected to range between $71.4 million (Rs20 billion) and $107.1 million (Rs30 billion).
The Pakistan Stock Exchange will play a crucial role in promoting the instrument to potential investors. The Green Sukuk program was developed with the support of several financial institutions, including Meezan Bank Limited, Bank Alfalah Limited, Dubai Islamic Bank Pakistan Limited, and Bank Islami Pakistan Limited.
This initiative aligns with Pakistan’s Vision 2028, which aims to transition the country towards an interest-free economy. It is expected to broaden the investor base, deepen financial markets, and accelerate Pakistan’s transition to a more resilient and sustainable economy.
