Pakistan Launches First Sovereign Green Sukuk with Meezan Bank’s Strategic Backing
In a major step toward sustainable and Shariah-compliant public financing, the Government of Pakistan has officially launched its first sovereign Green Sukuk, with vital strategic support from Meezan Bank and the Pakistan Stock Exchange (PSX).
Meezan Bank played a pivotal role in this landmark financial development, acting as the Joint Financial and Shariah Advisor. The bank also spearheaded the creation of the Sustainable Investment (SI) Sukuk Framework, which gained federal cabinet approval in April 2025. The framework aligns with global ESG standards, United Nations Sustainable Development Goals (SDGs), and Maqasid-e-Shariah—ensuring both environmental and Islamic compliance.
Massive Oversubscription Reflects Investor Confidence
The Rs. 30 billion Green Sukuk received a staggering Rs. 161 billion in bids, reflecting an oversubscription rate of 5.4 times within just two hours. Given the overwhelming investor demand, the issuance was upsized to Rs. 31.98 billion. The auction was conducted through the Pakistan Stock Exchange and executed by Pakistan Domestic Sukuk Company Limited (PDSCL), a Ministry of Finance entity.
The Green Sukuk is a three-year Ijarah-based instrument, offering semi-annual rental returns. Fully tradable on the PSX, it is eligible for the Statutory Liquidity Requirement (SLR) and accessible to retail investors, institutional buyers, and Roshan Digital Account (RDA) holders with a minimum investment of just PKR 5,000.
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Collaboration for Shariah Compliance and Market Education
In addition to Meezan Bank, Dubai Islamic Bank Pakistan, Bank Islami, and Bank Alfalah Islamic collaborated to ensure strict adherence to Shariah principles and the structural integrity of the Sukuk.
Meezan Bank also conducted a series of educational webinars and information sessions, targeting Non-Resident Pakistanis (NRPs), financial institutions, asset management firms, and ESG-conscious investors to boost participation and raise market awareness.
Green Projects to Benefit from Proceeds
Proceeds from the Green Sukuk will fund critical green infrastructure projects, including:
- Garuk Storage Dam (Kharan)
- Naigaj Dam (Dadu, Sindh)
- 26MW Shagarthang Hydropower Project (Skardu)
These projects aim to enhance climate resilience, boost renewable energy capacity, and improve water resource management in underserved regions.
High-Level Endorsement at Launch Ceremony
The official launch ceremony at the Pakistan Stock Exchange was attended by prominent dignitaries including:
- Muhammad Aurangzeb, Federal Finance Minister
- Dr. Shamshad Akhtar, Chairperson, Pakistan Stock Exchange
- Irfan Siddiqui, Founding President & CEO, Meezan Bank
