Introduction
Pakistan took a significant step towards financial innovation and environmental responsibility with the successful launch of its first Sovereign Domestic Green Sukuk on May 16, 2025.[1] This marks a notable intersection between Islamic finance and green investment, aimed at aligning capital market activities with the country’s broader climate resilience and sustainability objectives. As climate change increasingly poses challenges to the socio-economic fabric, the adoption of climate-linked, Shari’ah-compliant financing solutions like Green Sukuk presents a compelling opportunity for sustainable development to Pakistan.
The launch event, held on 16 May 2025, coincided with Youm-e-Tashakur (Thanksgiving Day) after the latest Pakistan-India conflict, symbolizing optimism and national pride. The Green Sukuk auction was open to a wide range of investors: local retail, institutional, and corporate participants; non-resident Pakistanis (NRPs); Roshan Digital Account holders; and foreign investors. Key financial institutions — including Meezan Bank, Dubai Islamic Bank, Bank Islami, and Bank Alfalah — served as joint financial advisors.[2] This inclusive approach promotes greater participation in the capital market while building trust in Pakistan’s reform-oriented economic policies underlining the importance of collaborative institutional support in scaling up green Islamic finance.
