In a major step towards sustainable finance, Pakistan launched its first Sovereign Domestic Green Sukuk at the Pakistan Stock Exchange (PSX) on May 16, 2025. The event was marked by a gong ceremony, celebrating a landmark moment in the country’s shift toward environmentally responsible investing.
Strong Investor Response
The three-year variable rental rate Green Sukuk received overwhelming demand, with the issue oversubscribed 5.4 times. While the government targeted Rs 30 billion, it accepted Rs 31.98 billion from total bids of Rs 161.74 billion. The cut-off rental rate was 10.6364%, which was 61 basis points lower than the reference rate of 11.2464%.
Leadership Commends Sustainable Finance Shift
Finance Minister Muhammad Aurangzeb opened the ceremony. Key figures in attendance included PSX Chairperson Dr. Shamshad Akhtar, Meezan Bank CEO Irfan Siddiqui, and HBL President Nassir Salim. Also present were CDC CEO Badiuddin Akber and SBP’s Muhammad Ali Malik.
Dr. Shamshad Akhtar said the Sukuk marks “a new chapter rooted in sustainability, inclusion, and accountability.” She highlighted its role in attracting funds for green energy, clean water, transport, and resilient infrastructure.
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Public-Private Partnership Praised
Khurram Schehzad, Advisor to the Finance Minister, appreciated the collaboration between public and private sectors. He emphasized the Sukuk’s role in expanding Pakistan’s green finance landscape and drawing a broader investor base.
Islamic Finance Joins the Green Mission
Meezan Bank CEO Irfan Siddiqui called the Green Sukuk a key step in merging Islamic finance with climate-resilient investments. He underlined the appeal of Shariah-compliant, eco-friendly financial products.
PSX Sees More Green Instruments Ahead
PSX CEO Farrukh H. Sabzwari celebrated the launch as a major achievement, noting investor confidence in ESG-focused instruments. He hinted at more such Sukuk in the near future to strengthen Pakistan’s sustainable finance ecosystem.
The Green Sukuk will fund clean projects backed by the Government of Pakistan, offering security and solid returns to both domestic and foreign investors.’
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