Pakistan’s first PKR-denominated Green Bond launched to accelerate climate finance
ISLAMABAD: In a landmark development for Pakistan’s sustainability-driven financial sector, Parwaaz Financial Services Limited (PFSL)—a subsidiary of Karandaaz Pakistan—has introduced the country’s first-ever PKR-denominated Green Bond under the Parwaaz Green Action Bond initiative. This bond is also the first Green Bond to be listed on the Pakistan Stock Exchange (PSX), aiming to channel investment into environmentally sustainable projects and bolster Pakistan’s green finance landscape.
Valued at PKR 1 billion, the bond has secured investment commitments from major 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 & Agricultural Investment Company Ltd., and Al Falah Insurance. This reflects strong investor confidence in the country’s emerging green finance sector.
At the launch, Muhammad Aurangzeb, Federal Minister for Finance and Revenue, emphasized the significance of the initiative:
“Pakistan’s economic resilience depends on integrating sustainability into our financial sector. The introduction of this Green Bond is a testament to our commitment to fostering an investment-friendly environment for climate-focused initiatives. This step not only transforms Pakistan’s financial landscape but also opens doors to large-scale green investments.”
The United Kingdom played a key role in structuring the bond, offering technical expertise through its Mobilising Institutional Capital Through Listed Product Structures (MOBILIST) programme. Karandaaz Pakistan itself was established with significant UK support. British High Commissioner Jane Marriott CMG OBE highlighted the bond’s impact, stating:
“This Green Bond is a shining example of how smart financial innovation can drive private sector-led economic growth while enhancing climate resilience. Pakistan requires $348 billion by 2030 to transition towards a greener economy, making climate finance mobilization more urgent than ever. Congratulations to everyone who played a role in delivering this bond—it benefits both the economy and the planet.”
Karandaaz Pakistan has been a leader in advancing green finance. Syed Salim Raza, Chairperson of the Karandaaz Pakistan Board, reaffirmed the organization’s long-term dedication to sustainability, stating:
“Our vision for green finance is rooted in long-term economic resilience. This bond proves that Pakistan can attract serious investment for sustainability-focused projects while ensuring financial growth does not come at the expense of the environment. Its success will strengthen Pakistan’s green financing ecosystem.”
Waqas ul Hasan, CEO of Karandaaz Pakistan, described the bond’s launch as a pivotal moment:
“This bond is not just a milestone for Karandaaz and Parwaaz Financial Services—it is a defining moment for Pakistan’s financial sector. Karandaaz is proud to lead efforts in mobilizing capital for green investments, ensuring financial instruments contribute to both economic development and environmental sustainability. We will continue creating mechanisms that align capital allocation with national development priorities.”
Building on PFSL’s track record in green finance, Javed Iqbal, CEO of PFSL, emphasized the strategic effort behind the initiative:
“This bond represents years of dedicated work to develop financial instruments that generate tangible environmental and economic impact. By directing capital into renewable energy and sustainable transportation, we are not just funding infrastructure—we are laying the groundwork for Pakistan’s green transition.”
The Parwaaz Green Action Bond marks a transformative step in Pakistan’s financial sector, demonstrating that sustainable investments are both viable and essential for the country’s economic future.
