Pakistan Launches First Sovereign Green Sukuk; Meezan Bank Serves as Joint Financial & Shariah Advisor

The Government of Pakistan, with strategic support from Meezan Bank and the Pakistan Stock Exchange, has launched its first sovereign Green Sukuk—marking a significant advancement in sustainable and Shariah-compliant public financing.

Meezan Bank played a central role in this landmark issuance, serving as Joint Financial and Shariah Advisor. In addition to its advisory responsibilities, the Bank was instrumental in developing the Sustainable Investment (SI) Sukuk Framework, which was approved by the federal cabinet in April 2025. The framework aligns with international best practices and integrates both the United Nations Sustainable Development Goals (SDGs) and the Maqasid-e-Shariah.

To support market readiness and investor participation, Meezan Bank conducted a series of information sessions and webinars, engaging Non-Resident Pakistanis, financial institutions, asset management companies, and ESG-focused investors. The Bank also collaborated with Dubai Islamic Bank Pakistan, Bank Islami, and Bank Alfalah Islamic to ensure full compliance with Shariah principles and uphold the structural integrity of the transaction.

A ceremony was held at the Pakistan Stock Exchange (PSX) to commemorate the launch, attended by Mr. Muhammad Aurangzeb, Federal Finance Minister; Dr. Shamshad Akhtar, Chairperson, PSX; and Mr. Irfan Siddiqui, Founding President & CEO of Meezan Bank.

The Rs. 30 billion issuance received an overwhelming response, with bids exceeding Rs. 161 billion—an oversubscription of 5.4 times within two hours. In view of the strong demand, the issue size was raised to Rs. 31.98 billion. The auction was conducted via the Pakistan Stock Exchange and executed by the Pakistan Domestic Sukuk Company Limited (PDSCL), a wholly owned entity of the Ministry of Finance.

The Green Sukuk is a three-year Ijarah-based instrument, offering semi-annual rental returns. It is fully tradable on the Pakistan Stock Exchange and qualifies for Statutory Liquidity Requirement (SLR). With a minimum investment of PKR 5,000, the issuance was designed to encourage broad participation, including retail investors, institutions, and Roshan Digital Account (RDA) holders.

Proceeds will finance selected green infrastructure projects, including the Garuk Storage Dam in Kharan, Naigaj Dam in Dadu (Sindh), and the 26MW Shagarthang Hydropower Project in Skardu. These initiatives aim to improve water resource management, expand renewable energy capacity, and strengthen climate resilience in underserved areas.