Pakistan launches first-ever Green Sukuk to fund climate projects

ISLAMABAD: In a landmark step toward environmental sustainability and green financing, Finance and Revenue Minister Muhammad Aurangzeb has officially announced the launch of Pakistan’s first-ever Green Sukuk, designed to fund eco-friendly infrastructure and climate resilience projects.

In a video message to the Pakistan Stock Exchange (PSX)—which recently closed at a record high—the minister commended the exchange’s leadership and noted the rising investor confidence in Pakistan’s economic direction.

“This Green Sukuk issuance is a major milestone,” Aurangzeb said, “showing the world that Pakistan is serious about climate action while staying economically resilient.”

The finance minister highlighted his recent engagements with global investors in Washington and London, stating that international stakeholders have expressed satisfaction over Pakistan’s macroeconomic stabilization, declining inflation, and growing foreign exchange reserves.

Aurangzeb confirmed that preparations for the federal budget 2025–26 are underway with input from public and private sector stakeholders.

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The aim, he said, is to present a forward-looking, inclusive financial plan that supports long-term economic growth and green transformation.

Stressing the role of sustainable financing, Aurangzeb cited Malaysia’s green economy model as an example for Pakistan to emulate.

He also shared that Pakistan is actively working to secure international climate financing to address vulnerabilities stemming from environmental degradation and climate change.

Celebrating recent economic progress, the finance minister noted that Thanksgiving Day is being observed across Pakistan, reflecting national optimism in light of both economic recovery and environmental reforms.