Pakistan Bets Big on Clean Energy Sukuk Bonds

The Government of Pakistan is gearing up to raise Rs52 billion through the issuance of green Sukuk bonds, aiming to fund three major clean energy projects under the Public Sector Development Programme. Spearheaded by the Ministry of Finance and backed by the Islamic Development Bank (IsDB), this initiative marks a significant push toward sustainable infrastructure and climate-friendly investments.

The three key projects include the 153MW Patrind Hydropower Project managed by Star Hydro Power Limited, the 640MW Mahl Hydropower Project overseen by the Water and Power Development Authority (WAPDA), and the 720MW Karot Hydropower Project under the China Pakistan Economic Corridor – CPEC and managed by Karot Power Company Limited. These projects will benefit from the issuance managed by Pakistan Water and Power Development Authority and facilitated through the Pakistan Development Fund Limited.

State Bank of Pakistan (SBP) and Securities and Exchange Commission of Pakistan (SECP) are involved in structuring and regulatory oversight, while Pak Brunei Investment Company Limited and The Bank of Punjab are acting as lead managers. This move signals Pakistan’s increasing alignment with ESG (Environmental, Social, and Governance) goals, showcasing the country’s drive to attract ethical investment and transition to greener energy sources.