Pakistan Launches Green Sukuk and Looks to Malaysia for Climate Finance Inspiration
Islamabad, May 16, 2025 — Federal Minister for Finance and Revenue, Muhammad Aurangzeb, has announced that Pakistan aims to follow Malaysia’s green finance model as part of its long-term sustainable development agenda. The announcement was made during a video address to the Pakistan Stock Exchange (PSX), where the finance minister officially launched Pakistan’s first-ever Green Sukuk bond.
This landmark initiative is designed to fund environmentally sustainable projects across the country. Aurangzeb praised the PSX for closing at a record high the previous day, which he said reflects growing investor confidence in the country’s economic trajectory.
Climate Change, Sustainability, and Economic Stability
Describing climate change as a significant and urgent threat to Pakistan, Aurangzeb emphasized the critical need for sustainable financing mechanisms to mitigate environmental risks. He underlined that green finance is no longer a choice but a necessity, and drew parallels with Malaysia’s successful framework that integrates climate policy with financial market development.
The finance minister highlighted his recent meetings with global investors in Washington and London, noting their confidence in Pakistan’s macroeconomic performance. Key achievements include improved inflation control, rising foreign exchange reserves, and an overall climate of fiscal discipline.
A Green Future for Pakistan’s Economy
Aurangzeb also confirmed that budget preparations for FY 2025–26 are underway, with wide-ranging stakeholder input aimed at building a robust and forward-looking fiscal plan. He added that climate financing remains a priority, with efforts ongoing to secure international support for green development projects.
In a nod to national pride, the finance minister referenced Pakistan’s celebration of Youm-e-Tashakur, a day of gratitude commemorating the victory in Operation Bunyan Marsoos (Marka-e-Haq). He said the country’s current economic and environmental progress was a reflection of both resilience and renewed optimism.
