Pakistan has taken a significant stride towards sustainable development with the launch of its first-ever Green Sukuk bond, announced by Federal Minister for Finance and Revenue, Muhammad Aurangzeb, during a video address at the Pakistan Stock Exchange (PSX).
Aurangzeb congratulated the PSX on reaching a record high the previous day, signaling strong investor confidence amid positive economic momentum. The launch of the Green Sukuk bond is a pivotal move aimed at financing environmentally sustainable projects across the country, as Pakistan intensifies efforts to combat climate change—a threat Aurangzeb highlighted as one of the biggest challenges facing the nation.
The finance minister shared insights from his recent engagements with global investors in Washington and London, noting broad international satisfaction with Pakistan’s improving macroeconomic stability. Key economic indicators, including inflation control and rising foreign exchange reserves, have contributed to this positive outlook.
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Preparations for the 2025-26 budget are currently underway, with active input from stakeholders focused on crafting a robust fiscal framework. Aurangzeb emphasized the importance of adopting sustainable financing models, highlighting Malaysia’s success in green economic initiatives as an example for Pakistan to follow.
Efforts to secure additional climate financing are ongoing, aimed at supporting Pakistan’s environmental mitigation projects and sustainable growth.
In parallel developments, Aurangzeb announced plans to issue a Panda Bond by June 2025 to strengthen Pakistan’s presence in China’s capital markets. Through this initiative, Pakistan aims to raise approximately $200 million from Chinese investors, complementing its broader strategy to pivot the economy towards export-driven growth and ensure sustainability in the balance of payments.
This dual approach underscores Pakistan’s commitment to integrating economic progress with environmental responsibility, positioning the country on a path toward greener and more resilient development.
