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ISLAMABAD: Parwaaz Financial Services Limited (PFSL), a subsidiary of Karandaaz Pakistan, has launched Pakistan’s first-ever PKR-denominated Green Bond under the Parwaaz Green Action Bond initiative.
The bond also known as, first Green Bond accessible through the Pakistan Stock Exchange (PSX) serves to direct environmental funding towards green initiatives and develop Pakistan’s green investment portfolio.
Major financial institutions including Bank Alfalah along with Bank of Khyber and Allied Bank as well as Pak Brunei Investment Company Ltd. and Pak China Investment Company Ltd, Pak Libya Holding Company Ltd. and Pak Oman Investment Company and Saudi Pak Industrial & Agricultural Investment Company Ltd. and Al Falah Insurance have made investment commitments for the Rs. 1 billion bond. The initiative demonstrates investors’ increasing faith in Pakistan’s green finance segment.
At the launch, Minister for Finance and Revenue Muhammad Aurangzeb emphasized its significance, stating, “Pakistan’s economic resilience depends on our ability to embrace sustainability in finance. The launch of this Green Bond is a testament to our commitment to fostering an investment-friendly environment for climate initiatives. This initiative not only aligns with the transformation of Pakistan’s financial sector but also paves the way for attracting green investments at scale.”
The UK government played an essential role in structuring the bond through its Mobilising Institutional Capital Through Listed Product Structures (MOBILIST) technical assistance program. The establishment of Karandaaz Pakistan received substantial backing from UK sources.
British High Commissioner Jane Marriott CMG OBE highlighted the importance of the initiative, stating, “This Green Bond is a brilliant example of how intelligent financial innovation can drive both private sector-led economic growth and greater climate resilience. Pakistan needs $348 billion by 2030 to adapt and make the green transition, so the need to mobilise climate finance has never been more urgent. Congratulations to those who have helped to deliver today’s Bond, which is good for the economy and good for the planet.”
Karandaaz Pakistan Board Chairperson Syed Salim Raza reiterated the organization’s commitment to sustainability, saying, “Our vision for green finance is rooted in long-term economic resilience. This bond demonstrates that Pakistan can attract serious investment in sustainability-focused projects while ensuring that financial growth does not come at the cost of environmental degradation. The success of this initiative will pave the way for a more robust green financing ecosystem in the country.”
Karandaaz Pakistan CEO Waqas ul Hasan described the bond as “not just a milestone for Karandaaz and Parwaaz Financial Services but a defining moment for the entire financial sector of Pakistan. Karandaaz is proud to lead the way in mobilizing capital for green investments, ensuring financial instruments work for both economic progress and environmental sustainability. We will continue to strive for instruments which enable capital allocation to development outcomes of the country.”
PFSL CEO Javed Iqbal highlighted the company’s dedication to green financing, stating, “This bond is the result of years of strategic effort to create financial instruments that generate measurable environmental and economic impact. By directing capital into renewable energy and clean transportation, we are not only financing infrastructure but also laying the foundation for Pakistan’s green transition.”
The launch of the Green Bond marks a significant step in Pakistan’s efforts to promote sustainable finance and attract investment for climate-friendly initiatives.
