The federal government has successfully launched its first Green Sukuk, a Shariah-compliant bond designed to fund environmentally friendly projects across the country. The Rs 30 billion inaugural issuance, conducted through the Pakistan Stock Exchange (PSX), marks a major step in aligning Pakistan’s financial markets with global green financing standards. The Ministry of Finance (MoF) spearheaded this landmark initiative, which will direct investments toward renewable energy, clean transportation, and climate-resilient infrastructure, according to 2024-25 Economic Survey report. Unlike conventional bonds, the Green Sukuk ensures all funded projects meet strict environmental and social criteria, making it a pioneering instrument in Pakistan’s financial sector. The Sustainable Investment Sukuk Framework, approved by the federal cabinet, ensures transparency and compliance with global green financing principles. The Pakistan Stock Exchange (PSX) will list and promote the Sukuk, broadening its appeal to ethical investors, Islamic banks, and international funds. Proceeds will exclusively finance projects that reduce carbon emissions, enhance energy efficiency, or support social development. Pakistan, highly vulnerable to climate change, has been seeking innovative ways to fund its transition to a low-carbon economy. The Green Sukuk not only deepens Pakistan’s financial markets but also attracts a new wave of environmentally conscious investors. Analysts predict it could unlock billions in sustainable financing while supporting the country’s climate commitments under the Paris Agreement. The government plans to expand Green Sukuk offerings, encouraging private sector participation in green projects. This initiative positions Pakistan as a regional leader in Islamic sustainable finance, setting a precedent for other developing nations.