AsiaNet-Pakistan Premier Editorial Content and Press Release Distribution Service
Karachi: The Government of Pakistan, in collaboration with Meezan Bank and the Pakistan Stock Exchange, has introduced its inaugural sovereign Green Sukuk. This marks a significant step forward in sustainable and Shariah-compliant public financing.
Meezan Bank played a pivotal role in this issuance, acting as Joint Financial and Shariah Advisor. The Bank was instrumental in creating the Sustainable Investment Sukuk Framework, approved by the federal cabinet in April 2025. This framework aligns with international standards and incorporates the United Nations Sustainable Development Goals (SDGs) alongside Maqasid-e-Shariah.
To facilitate market readiness, Meezan Bank organized information sessions and webinars targeting Non-Resident Pakistanis, financial institutions, asset management firms, and ESG-focused investors. The Bank worked closely with Dubai Islamic Bank Pakistan, Bank Islami, and Bank Alfalah Islamic to ensure adherence to Shariah principles and maintain the structural integrity of the transaction.
A launch ceremony took place at the Pakistan Stock Exchange, attended by key figures including Federal Finance Minister Muhammad Aurangzeb, PSX Chairperson Dr. Shamshad Akhtar, and Meezan Bank’s Founding President and CEO Irfan Siddiqui.
The Rs. 30 billion issuance witnessed overwhelming demand, with bids surpassing Rs. 161 billion. In response, the issue size was increased to Rs. 31.98 billion. The auction was conducted via the Pakistan Stock Exchange and executed by the Pakistan Domestic Sukuk Company Limited, a Ministry of Finance entity.
The Green Sukuk is a three-year Ijarah-based instrument, offering semi-annual rental returns and is fully tradable on the Pakistan Stock Exchange. It qualifies for Statutory Liquidity Requirement (SLR) and is accessible to a wide range of investors with a minimum investment of PKR 5,000.
The funds raised will support green infrastructure projects such as the Garuk Storage Dam in Kharan, Naigaj Dam in Dadu, and the 26MW Shagarthang Hydropower Project in Skardu. These projects are aimed at enhancing water resource management, increasing renewable energy capacity, and bolstering climate resilience in underserved regions.