Islamabad: In a landmark move to strengthen its commitment to environmental, social, and governance (ESG) principles, Pakistan has rolled out its Sovereign Sustainable Finance Framework. This initiative is set to redefine the country’s approach to sustainable finance by providing a structured pathway for issuing Sustainable Financing Instruments, including green, social, and sustainability bonds.

The framework, developed in collaboration with Citi Bank and Deutsche Bank as Joint Sustainability Coordinators, adheres to international benchmarks. This includes principles set by the International Capital Market Association for green, social, and sustainability bonds, as well as guidelines for green and social loans and blue bonds from global bodies.

To ensure transparency and bolster credibility, Sustainable Fitch has delivered an independent Second Party Opinion (SPO), grading the Framework as “Excellent.” This acknowledgment underscores Pakistan’s adherence to global best practices in sustainable financing. The SPO is readily accessible on the Ministry of Finance’s official website, offering stakeholders detailed insights.

This framework is applicable to any Sustainable Financing Instrument, such as bonds and international sukuks, that the Government of Pakistan may issue. It will remain effective until revised to align with the latest market developments and Pakistan’s evolving ESG objectives. This strategic effort is anticipated to improve the nation’s access to global sustainable finance markets, propelling its transition towards a more robust and inclusive economic model.