Karachi, 29th May 2025 – The Government of Pakistan, with strategic support from Meezan Bank and the Pakistan Stock Exchange (PSX), has launched its first sovereign Green Sukuk—a landmark achievement in sustainable and Shariah-compliant public financing.
Meezan Bank’s Pivotal Role in the Green Sukuk Issuance
Meezan Bank served as the Joint Financial and Shariah Advisor for this historic issuance. The Bank played a key role in developing the Sustainable Investment (SI) Sukuk Framework, approved by the federal cabinet in April 2025. The framework aligns with international best practices, integrating the UN Sustainable Development Goals (SDGs) and Maqasid-e-Shariah.
To ensure market readiness, Meezan Bank conducted investor awareness sessions and webinars, engaging Non-Resident Pakistanis (NRPs), financial institutions, asset managers, and ESG-focused investors. The Bank also collaborated with Dubai Islamic Bank Pakistan, Bank Islami, and Bank Alfalah Islamic to ensure full Shariah compliance and transaction integrity.
Launch Ceremony at Pakistan Stock Exchange
A ceremony was held at PSX to mark the occasion, attended by:
- Mr. Muhammad Aurangzeb, Federal Finance Minister
- Dr. Shamshad Akhtar, Chairperson, PSX
- Mr. Irfan Siddiqui, Founding President & CEO, Meezan Bank
Record-Breaking Investor Response
The Rs. 30 billion Sukuk issuance witnessed overwhelming demand, with bids exceeding Rs. 161 billion—an oversubscription of 5.4 times within two hours. Due to strong investor interest, the issue size was increased to Rs. 31.98 billion.
The auction was conducted via PSX and executed by the Pakistan Domestic Sukuk Company Limited (PDSCL), a subsidiary of the Ministry of Finance.
Key Features of the Green Sukuk
- Three-year Ijarah-based instrument
- Semi-annual rental returns
- Fully tradable on PSX
- Eligible for Statutory Liquidity Requirement (SLR)
- Minimum investment: PKR 5,000 (encouraging retail investors, institutions, and Roshan Digital Account holders)
Funding Green Infrastructure Projects
Proceeds will finance environmentally sustainable projects, including:
- Garuk Storage Dam (Kharan)
- Naigaj Dam (Dadu, Sindh)
- 26MW Shagarthang Hydropower Project (Skardu)
These initiatives aim to enhance water resource management, renewable energy capacity, and climate resilience in underserved regions.