Green bond launched: Cannot advance without long-term planning, says PM

Prime Minister Imran Khan on Monday said that a country cannot move forward without long-term planning.

In his address, Prime Minister lauded WAPDA for the successful issuance of the country’s first Green Euro bond (Indus Bond). Days ago, WAPDA successfully raised $500 million from the international markets at 7.5, completing a landmark deal not just for Pakistan’s power sector, but also the country’s first green bond issuance.

The launch of the bond attracted a number of international investors, who offered Wapda investments worth $3 billion i.e. six times more than the amount needed to be raised. WAPDA issued Green Eurobond to raise $500 million for financing of Diamar Bhasha and Mohmand Dam.

"We initiate projects but unfortunately there are delays in implementation. Unless there is a long-term plan, we cannot make progress. There was a lack of long-term planning in every sector and the country fell behind due to lack of long-term planning," he said.

He said that 10 dams will be constructed in Pakistan in the coming ten years. “These dams will not only generate 10,000 megawatts of additional electricity but it will be clean and environmentally friendly as well,” said PM.

Talking about the government's 10 Billion Tree Tsunami Project, Prime Minister informed that since 2018 the government has planted one billion trees.

Imran Khan further said that they are bringing uniform education systems all over the country, giving maximum concessions to industries.

Earlier, Finance Minister Shaukat Tarin congratulated Chairman Wapda and his team for the successful issuance of bonds. “The bond issuances of sub sovereigns are done in the private sector all over the world, they offer capital market solutions to the funding needs. However, for Pakistan this is the first and should encourage further such transactions in the future as the economy embarks on a growth path,” said Tarin.

Finance Minister said that green bonds are becoming popular globally as countries are reorienting their policies to join the race to zero-emission. “Only in the first quarter of this year the world issued $107 billion of such bonds, with most of them in Asia Pacific. And during this year it is estimated that globally there will be $450- 500 billion dollars of such bonds much higher than the last year.”

He said that the Ministry of Finance is committed to contributing to the prime minister’s vision. "While, Wapda’s green bond is Pakistan first such international transaction it is heartening that the SECP is presently reviewing global approaches and drafting policies to encourage local bonds in this market,” he said.

He said that the construction of Diamer Bhasha and Mohmand Dam are critical to the country's future energy, water, and food security needs and their timely completion will surely have a significant impact on Pakistan's growth and development.

“The issuance of green bonds and the use of their proceeds on environmentally friendly projects are essential for Pakistan to meet its intended nationally determined contributions committed at the UN,” said Tarin.