Islamabad, Pakistan – In a historic milestone for Pakistan’s sustainability-driven financial sector, Parwaaz Financial Services Limited (PFSL), a subsidiary of Karandaaz Pakistan, has launched the country’s first PKR-denominated Green Bond under the Parwaaz Green Action Bond initiative. The bond, valued at Rs. 1 billion, is also the first Green Bond to be listed on the Pakistan Stock Exchange (PSX).
The initiative aims to mobilize capital for environmentally sustainable projects and strengthen Pakistan’s green investment ecosystem. Leading financial institutions, including Bank Alfalah, Bank of Khyber, Allied Bank, Pak Brunei Investment Company Ltd., Pak China Investment Company Ltd., Pak Libya Holding Company Ltd., Pak Oman Investment Company, Saudi Pak Industrial & Agricultural Investment Company Ltd., and Al Falah Insurance, have committed investments to the bond, reflecting robust investor confidence in Pakistan’s green finance sector.
Government and International Support
Federal Minister for Finance and Revenue, Muhammad Aurangzeb, emphasized the bond’s significance, stating, “Pakistan’s economic resilience depends on our ability to embrace sustainability in finance. The launch of this Green Bond is a testament to our commitment to fostering an investment-friendly environment for climate initiatives. This initiative not only aligns with the transformation of Pakistan’s financial sector but also paves the way for attracting green investments at scale.”
The United Kingdom has played a crucial role in bringing the Green Bond to market, providing specialist expertise through the UK government’s Mobilising Institutional Capital Through Listed Product Structures (MOBILIST) programme. Karandaaz Pakistan, the parent company of PFSL, was established with significant UK support.
British High Commissioner to Pakistan, Jane Marriott CMG OBE, praised the initiative, stating, “This Green Bond is a brilliant example of how intelligent financial innovation can drive both private sector-led economic growth and greater climate resilience. Pakistan needs $348 billion by 2030 to adapt and make the green transition, so the need to mobilize climate finance has never been more urgent. Congratulations to those who have helped deliver today’s Bond, which is good for the economy and good for the planet.”
Commitment to Green Finance
Karandaaz Pakistan has been a leader in green finance mobilization. Syed Salim Raza, Chairperson of the Karandaaz Pakistan Board, reiterated the organization’s commitment to sustainability, saying, “Our vision for green finance is rooted in long-term economic resilience. This bond demonstrates that Pakistan can attract serious investment in sustainability-focused projects while ensuring that financial growth does not come at the cost of environmental degradation.”
Waqas ul Hasan, CEO of Karandaaz Pakistan, described the bond as a “defining moment” for Pakistan’s financial sector. “Karandaaz is proud to lead the way in mobilizing capital for green investments, ensuring financial instruments work for both economic progress and environmental sustainability. We will continue to strive for instruments that enable capital allocation to development outcomes of the country,” he added.
Future Prospects
Building on PFSL’s established track record in green financing, Javed Iqbal, CEO of PFSL, highlighted the strategic efforts behind the bond. “This bond is the result of years of effort to create financial instruments that generate measurable environmental and economic impact. By directing capital into renewable energy and clean transportation, we are not only financing infrastructure but also laying the foundation for Pakistan’s green transition,” he said.
The Parwaaz Green Action Bond is expected to set a precedent for future green financing initiatives in Pakistan, encouraging more investments in sustainable infrastructure and supporting the country’s transition to a low-carbon economy.
