Pakistan lists first rupee-denominated green bond on PSX

Pakistan has listed its first rupee-denominated green bond on the Pakistan Stock Exchange, marking an entry into domestic climate-focused capital market instruments.

The bond, issued by Parwaaz Financial Services Limited, has been developed with technical support from the UK government’s MOBILIST programme. It is aimed at raising private investment for projects in renewable energy, clean agriculture, and green transport.

A gong ceremony was held in Islamabad to mark the listing, attended by representatives from the Ministry of Finance, Ministry of Climate Change and Environmental Coordination, Securities and Exchange Commission of Pakistan, Karandaaz Pakistan, and the British High Commission.

Officials said the issuance is part of broader efforts to develop market-based instruments to finance climate-related initiatives and reduce reliance on public funding. The government’s Social Impact Framework, introduced in 2024, has been positioned as a mechanism to support such financing tools.

Karandaaz Pakistan highlighted its role in facilitating the development of sustainable finance instruments, stating that structured financial products can help channel investment into long-term economic and climate priorities.

Market participants said the listing also reflects the role of the stock exchange in supporting alternative financing avenues, including instruments linked to environmental objectives.

The issuer stated that proceeds from the bond will be directed toward projects aligned with climate and economic outcomes, while offering investors market-based returns and liquidity.