A Milestone in Sustainable Islamic Finance
In a groundbreaking move towards sustainable development, Pakistan has issued its first-ever PKR 30 billion Sovereign Domestic Green Sukuk. This Shariah-compliant financial instrument is designed to fund environmentally responsible infrastructure projects, including the construction of three new dams, aligning with the nation’s commitment to combat climate change.
Key Features of the Green Sukuk
• Structure: Based on the Ijarah (lease-based) model, the three-year Sukuk offers a variable rental rate and is issued under Pakistan’s Sustainable Investment Sukuk Framework.
• Purpose: Proceeds will finance eligible green and climate-resilient projects, marking a shift towards long-term, cost-effective borrowing solutions. Zameen+2Graana.com+2Profit by Pakistan Today+2
• Market Impact: The issuance increases the share of Shariah-compliant debt to 14% of Pakistan’s PKR 37 trillion domestic debt portfolio.
Investor Confidence and Economic Indicators
Finance Minister Muhammad Aurangzeb highlighted the Green Sukuk as a sign of growing investor trust in Pakistan’s financial markets. He noted improvements in economic indicators, including a decline in the debt-to-GDP ratio from 74% to 65% and an increase in the tax-to-GDP ratio from 9.5% to 10.6%, with a target of 11% by FY26.
Accessibility and Future Plans
The Sukuk is accessible to a wide range of investors, including institutions, non-resident Pakistanis, retail investors, Roshan Digital Account holders, and international participants. Looking ahead, the government plans to issue a Panda Bond—denominated in Chinese Yuan—by the end of 2025, expanding its international financing footprint.
Saimen Group’s Perspective
At Saimen Group, we view this development as a significant step towards integrating sustainable finance into Pakistan’s economic framework. As a real estate developer committed to environmentally responsible practices, we recognize the importance of such initiatives in fostering a resilient and sustainable future.