Pakistan lists first PKR Green Bond

March 31, 2026 (MLN): Pakistan marked a milestone in its capital markets with the listing of the country’s first rupee-denominated green bond by Parwaaz Financial Services Limited, signalling growing investor appetite for climate-aligned financing instruments.

The bond was formally introduced at a gong ceremony hosted by Karandaaz Pakistan, where Advisor to the Finance Minister Khurram Schehzad said the issuance reflects increasing confidence in Pakistan’s ability to mobilize private capital for sustainable investments.

The secured, AA-rated instrument, developed with technical assistance from the UK government’s MOBILIST programme, is aligned with international green bond principles and regulatory guidelines of the Securities and Exchange Commission of Pakistan.

Proceeds are expected to be directed toward renewable energy, clean agriculture and green transportation projects.

Officials said the listing represents a step forward in diversifying funding sources and strengthening long-term economic resilience, particularly as Pakistan seeks to reduce reliance on conventional financing channels.

The initiative also aligns with broader reforms aimed at fiscal consolidation and private sector-led growth.

Schehzad highlighted that Pakistan has been building momentum in sustainable finance, citing the $500 million green Eurobond issued by Water and Power Development Authority in 2021, as well as a PKR 30 billion sovereign green bond issued last year that drew strong investor demand.

He added that upcoming instruments, including Panda bonds, are being explored to attract international capital and bolster external financing.

Representatives from the Pakistan Stock Exchange, regulatory bodies, and development partners, including the British High Commission attended the listing.

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