Green Sukuk launched to boost green economy
The government has launched the first Green Sukuk aiming at to attract a broader investor base, deepen financial markets, and accelerate the country's transition to a green and resilient economy.
The other objective of the initiative was to channel investments into environmentally sustainable projects while fostering economic growth, besides integrating sustainable finance into the core of the development strategy, said a press release issued by the Ministry of Finance on Wednesday.
This pioneering financial instrument is set to revolutionise Pakistan's sukuk market by channeling investments into environmentally sustainable projects while fostering economic growth, it added.
The Green Sukuk marks a pivotal step in aligning the financial markets of the country with global best practices in green financing. The inaugural issuance, ranging between Rs20 billion and Rs30 billion, will be conducted through an auction process, with the Pakistan Stock Exchange (PSX) playing a central role in listing and promoting this innovative instrument to investors.
The Green Sukuk Program has been structured with the support of the Joint Financial Advisors: Meezan Bank Limited, Bank Alfalah Limited, Dubai Islamic Bank Pakistan Limited, and Bank Islami Pakistan Limited.
The Sustainable Investment Sukuk Framework, approved by the Cabinet, lays the foundation for the landmark debut of the Green Sukuk. This initiative is closely aligned with Pakistan's Vision 2028, particularly its goal of transitioning to an interest-free economy. It reflects the government's strong commitment to leveraging financial markets in support of sustainable development.
The Green Sukuk is a beacon of innovation and a testament to the unwavering commitment of the government to foster sustainable development and reduce environmental impact. It offers investors a unique opportunity to support environmentally friendly projects while promoting economic growth.
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