ISLAMABAD: Finance Minister Muhammad Aurangzeb said Friday that the launch of Green Action Bonds is a testament to our commitment to fostering an investment-friendly environment for climate initiatives.
The finance minister was speaking at the launch of the Parwaaz Green Action Bond event organised by the Karandaaz Pakistan, here on Friday.
Parwaaz Financial Services Limited (PFSL), a subsidiary of Karandaaz Pakistan, has launched the country’s first-ever PKR-denominated Green Bond under the Parwaaz Green Action Bond initiative.
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The bond, which is also the first ever Green Bond to be listed on the Pakistan Stock Exchange (PSX), aims to mobilise capital for environmentally sustainable projects and strengthen Pakistan’s green investment ecosystem.
At the launching ceremony, Aurangzeb said that Pakistan’s economic resilience depends on our ability to embrace sustainability in finance. Pakistan’s first PKR-denominated Green Bond is launched to accelerate climate finance. This initiative not only aligns with the transformation of Pakistan’s financial sector but also paves the way for attracting green investments at scale.
He stated that we are beginning to see climate threat as a substantial threat to Pakistan including flooding, growing pollution, melting glaciers which call for urgent action on our part.
He said that Pakistan has very constructive discussion with the International Monetary Fund (IMF) on fund’s Resilience and Sustainability Facility (RSF) arrangements, which provide long-term financing for climate resilience projects. This is for the first time we approached the fund on this issue and the response was very positive.
Referring to floods-2022, he said that the pledges made were exceeding US$10 billion during floods, but finally what the country received was a one-third of it. The funding and financing is there but we need the capacity to utilise it, he added.
The PKR 1 billion bond includes investment commitments from leading financial institutions including Bank Alfalah, Bank of Khyber, Allied Bank, Pak Brunei Investment Company Ltd, Pak China Investment Company Ltd, Pak Libya Holding Company Ltd, Pak Oman Investment Company, Saudi Pak Industrial and Agricultural Investment Company Ltd, and Al Falah Insurance. The initiative reflects strong investor confidence in Pakistan’s green finance sector.
The UK has played a key role in bringing today’s Bond to market, including through specialist expertise to help structure it. PFSL received technical assistance from the UK government’s Mobilising Institutional Capital through Listed Product Structures (MOBILIST) programme. Karandaaz Pakistan was also created with a significant UK support.
British High Commissioner, Jane Marriott CMG OBE, said: “This Green Bond is a brilliant example of how intelligent financial innovation can drive both private sector-led economic growth and greater climate resilience. Pakistan needs $348 billion by 2030 to adapt and make the green transition, so the need to mobilise climate finance has never been more urgent. Congratulations to those who have helped to deliver today’s Bond, which is good for the economy and good for the planet.”
Syed Salim Raza, chairperson of the Karandaaz Pakistan Board, reiterated Karandaaz’s long-term commitment to sustainability, stating, “Our vision for green finance is rooted in long-term economic resilience. This bond demonstrates that Pakistan can attract serious investment in sustainability-focused projects while ensuring that financial growth does not come at the cost of environmental degradation. The success of this initiative will pave the way for a more robust green financing ecosystem in the country.”
Speaking at the launch, Waqasul Hasan, CEO of Karandaaz Pakistan, described the bond as “not just a milestone for Karandaaz and Parwaaz Financial Services but a defining moment for the entire financial sector of Pakistan. The bond builds upon PFSL’s existing track record in green financing.
Javed Iqbal, CEO of PFSL said: “This bond is the result of years of strategic effort to create financial instruments that generate measurable environmental and economic impact. By directing capital into renewable energy and clean transportation, we are not only financing infrastructure but also laying the foundation for Pakistan’s green transition.”
Copyright Business Recorder, 2025
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