In a major step toward promoting sustainable development and environmental innovation, the Ministry of Climate Change and Environmental Coordination has signed a green financing agreement worth Rs 10 billion with the National Credit Guarantee Company Limited (NCGCL).
The agreement was finalized during a high-level meeting held Thursday between Federal Minister Dr. Musadik Malik and NCGCL CEO Ammar Habib. The initiative marks a significant boost for Pakistan’s green economy ambitions and reflects a deepening collaboration between government institutions and financial stakeholders to advance climate resilience.
The financing framework is designed to support green entrepreneurship, with a special focus on young innovators and women-led startups, by offering financial guarantees for environmentally sustainable projects. The arrangement is expected to create new pathways for eco-conscious business models, while reducing the risk barriers often faced by emerging ventures in the green sector.
Under the agreement, NCGCL — which was recently awarded a prestigious AAA rating by PACRA — will provide credit guarantees across various financing instruments including convertible bonds, hybrid financial structures, loans, and equity investments. These tools are intended to de-risk green ventures, making it easier for private capital to flow into environmentally responsible initiatives.
The partnership aligns with Pakistan’s broader climate strategy by encouraging private sector participation in tackling climate change and building a low-carbon economy. It also emphasizes the role of inclusive financing in supporting long-term sustainability goals.
Describing the agreement as a milestone in the country’s climate finance journey, Dr. Musadik Malik stated that the move represents “a crucial step in advancing green finance and supporting Pakistan’s climate goals.”
He added that the collaboration reinforces the government’s intent to build “an enabling environment for sustainable businesses,” especially those positioned to drive innovation in climate-smart solutions.
The agreement between the ministry and NCGCL is expected to serve as a catalyst for scalable and inclusive green growth across Pakistan, while demonstrating the government’s commitment to climate-smart economic transformation.
