Pakistan introduces Sovereign plan to raise climate and social financing

The Government of Pakistan has launched its Sovereign Sustainable Finance Framework to show its commitment to sustainability and provide a clear plan for raising funds through green, social, and sustainability-linked bonds and sukuks.

This step is designed to strengthen Pakistan’s role in the global sustainable finance market while also building a strong system for such financing at home.

The Framework was prepared with the support of Citibank and Deutsche Bank, who worked as Joint Sustainability Coordinators. It follows international standards, including guidelines from the International Capital Market Association (ICMA) for green and social bonds, principles for green and social loans, and global blue bond rules.

To ensure credibility, Sustainable Fitch reviewed the Framework and gave it an “Excellent” rating, calling it strongly aligned with global best practices. Their detailed opinion is also available on the Ministry of Finance’s website for transparency.

Through this Framework, Pakistan will now be able to issue a variety of sustainable financing instruments, such as bonds and international sukuks. It will be updated over time to reflect new global practices and Pakistan’s progress on its environmental, social, and governance (ESG) goals.

The government hopes this move will open up greater access to international green financing and support the country’s journey toward a stronger, fairer, and more sustainable economy.

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