Pakistan pursuing green bonds, Sukuk to mobilize climate finance

Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb said on Wednesday Pakistan currently has access to around $600 to $700 million in climate finance and is actively pursuing diversified funding avenues, including green bonds and innovative instruments, to support its climate resilience and energy transition goal

ISLAMABAD, (APP - UrduPoint / Pakistan Point News - 6th May, 2026) Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb said on Wednesday Pakistan currently has access to around $600 to $700 million in climate finance and is actively pursuing diversified funding avenues, including green bonds and innovative instruments, to support its climate resilience and energy transition goals.

Addressing the DawnMedia Breathe Pakistan International Climate Change Conference 2026, the minister said Pakistan expected to get approximately $200 million from International Monetary Fund (IMF), while the Asian Development Bank (ADB) was also extending assistance.

He said, the government was working to go for the inaugural Panda bond this month, which is expected to be around $250 million equivalent in RMB.

Emphasizing the importance of green financing, the minister said the government was focusing on diversifying its funding base through instruments such as green bonds and locally issued green sukuk. Aurangzeb stressed the need for a pragmatic approach, urging stakeholders to effectively utilize currently available resources instead of focusing on large, theoretical financing gaps.

The discussions about hundreds of billions of dollars in gaps are academic at this stage.

The priority should be to deploy available funds efficiently, he remarked.

Referring to international best practices, the minister said China’s rapid growth in green finance — achieving nearly 40 percent of global green bond issuance — provided valuable lessons. He also acknowledged the support of international experts in helping Pakistan develop a green investment pipeline and accelerator framework.

Highlighting broader economic and energy priorities, the minister said Pakistan must move beyond maintaining commercial reserves and work towards establishing strategic reserves, while accelerating the transition to renewable energy. He emphasized scaling up investments in solar, wind and hydropower projects to reduce reliance on fossil fuels.

He further noted ongoing initiatives including energy efficiency measures, electric vehicle promotion, subsidies and risk-sharing mechanisms to support the transition.

The minister called for greater reliance on indigenous resources, stressing the need to strengthen domestic capital markets and reduce overdependence on bank financing. He highlighted the importance of mobilizing resources through our own capital markets and channel them towards green investment and sustainable finance.