Pakistan launched its first-ever rupee-denominated Green Bond, marking a major milestone in efforts to mobilise private sector capital for environmentally sustainable development.
The bond, issued by Parwaaz Financial Services Limited (PFSL), a subsidiary of Karandaaz Pakistan, has become the first green bond to be listed on the Pakistan Stock Exchange (PSX). Backed by a Rs1 billion investment commitment from multiple leading financial institutions, the Parwaaz Green Action Bond is designed to channel funds into renewable energy, clean transport, and other green infrastructure projects.
Speaking at the launch ceremony, Finance Minister Muhammad Aurangzeb said the initiative reflects Pakistan’s commitment to building an investment-friendly environment for climate-related ventures. He said that addressing climate challenges such as floods, pollution, and melting glaciers requires innovative financial solutions and urgent action.
He added that Pakistan’s economy must embed sustainability in its financial systems to ensure long-term resilience. “The Green Action Bond represents a significant step toward attracting large-scale green investment and transforming the financial sector,” he said.
Aurangzeb also referred to Pakistan’s discussions with the International Monetary Fund (IMF) under its Resilience and Sustainability Facility (RSF), aimed at securing long-term climate financing. He noted the IMF’s response was encouraging, marking Pakistan’s first formal engagement on climate financing with the Fund.
Commenting on the aftermath of the 2022 floods, he said that while pledges exceeded $10 billion, the country received only a third of the promised amount, underlining the need for enhanced capacity to utilise climate financing effectively.
The bond attracted commitments from Bank Alfalah, Bank of Khyber, Allied Bank, and several development finance institutions, including Pak Brunei, Pak China, Pak Libya, Pak Oman, and Saudi Pak Investment Companies, as well as Alfalah Insurance.
The UK played a key role in supporting the launch through technical assistance from its MOBILIST programme. The British High Commissioner, Jane Marriott, praised the bond as a model for leveraging private sector capital to meet Pakistan’s estimated $348 billion green financing needs by 2030.
Karandaaz Board Chairperson Syed Salim Raza said the bond reinforces the institution’s long-term commitment to sustainable finance, while CEO Waqasul Hasan called it a defining moment for the country’s financial sector.
Javed Iqbal, CEO of PFSL, said the launch is the result of years of effort to create financial tools that support both environmental and economic goals, and that the bond would help finance Pakistan’s transition toward clean energy and sustainable transport.
