Karachi: Pakistan has taken a step towards aligning with climate-conscious nations by launching its inaugural Green Sukuk, a financial instrument aimed at supporting sustainable development. Advisor to the Finance Minister, Khurram Schehzad, announced the initiative during a session at the Pakistan Stock Exchange (PSX), highlighting the country’s commitment to the global green movement.

Mr. Schehzad emphasized the importance of this initiative in attracting investment and stimulating economic growth. He noted that while the decisions required were challenging, they were essential for the country’s long-term economic health. He pointed out the investment opportunities available across multiple sectors in Pakistan.

The Green Sukuk launch was attended by key figures from the Ministry of Finance and PSX, including Dr. Shamshad Akhtar, Chairperson of PSX, and Farrukh Sabzwari, Managing Director and CEO of PSX. Mr. Schehzad credited the Debt Management team for achieving a fiscal surplus for the first time in 24 years and outlined ongoing structural reforms.

These reforms include government department restructuring, privatization efforts, and improvements in the energy sector. Mr. Schehzad mentioned the privatization of Pakistan International Airlines (PIA) and the establishment of independent boards for State-Owned Enterprises as part of these efforts.

Dr. Shamshad Akhtar highlighted the evolution of Islamic finance and stressed the need for increased investor awareness of Sukuk instruments. Efforts are underway at both national and international levels to promote understanding and education around these financial tools.

Farrukh Sabzwari underscored the necessity of collaborative efforts and shared that a gamification strategy is being used to enhance financial literacy related to Green Sukuk.

Eraj Hashmi, Director of Debt at the Ministry of Finance, assured that the Debt Management Office is focused on managing public debt efficiently, ensuring sustainability and flexibility in the debt portfolio.

The event showcased Pakistan’s resolve to integrate into the global framework for sustainable finance, demonstrating a commitment to economic and environmental resilience.