Karachi, May 16, 2025 — Pakistan has issued its first sovereign Green Sukuk, raising approximately $114 million to finance eco-friendly, Shariah-compliant projects. This marks a key milestone in the country’s push toward green and Islamic finance.

The Sukuk will fund renewable energy, clean transport, and climate-resilient infrastructure. Issued under the Sustainable Investment Sukuk Framework, the offering was oversubscribed by over 5 times, with bids totaling $578 million. The accepted yield was 10.6%, slightly lower than the benchmark rate of 11.2%.

Backed by institutions like Meezan Bank, Bank Alfalah, and Dubai Islamic Bank, the issuance was conducted through the Pakistan Stock Exchange (PSX). It supports Pakistan’s Vision 2028 for an interest-free and sustainable economy.

At the launch, Finance Minister Muhammad Aurangzeb and PSX Chairperson Dr. Shamshad Akhtar highlighted the importance of integrating Islamic finance with environmental goals.

“This Green Sukuk proves Pakistan’s commitment to a greener economy and responsible investment,” said Dr. Akhtar.