Pakistan Launches Green Sukuk to Fund New Energy Projects

Pakistan launched its first Sovereign Domestic Green Sukuk on Friday, valued at Rs30 billion, at the Pakistan Stock Exchange (PSX). The Sukuk aims to fund climate-resilient and new energy projects. The three-year Sukuk is structured on an Ijarah basis with a variable rental rate. Proceeds will fund eligible green energy initiatives, including the construction of three dams. The Green Sukuk increases the share of Shariah-compliant financing in Pakistan's domestic debt to 14%. The auction is open to local, institutional, corporate investors, NRPs, and foreign investors.