Islamabad March 23 2024: Pakistan launched PKR denominated Parwaaz Green Action Bond for addressing climate change and securing sustainable financing by targeting both local and foreign investors.
Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb said here on Friday that launch of PKR Green Action Bond reinforces the country’s commitment to environmental resilience and economic sustainability.
The minister was speaking at signing ceremony of the Parwaaz Green Action Bond, which marks a significant step toward addressing climate change and securing sustainable financing.
He highlighted Pakistan’s growing recognition of climate change as an existential threat, citing concerns such as severe flooding and escalating pollution levels in major cities. He pointed out that 10,000 of Pakistan’s 13,000 glaciers are receding, posing a serious risk to water security.
Aurangzeb stressed the need to translate climate awareness into actionable solutions and noted Ministry of Climate’s crucial role. He also mentioned recent discussions with the International Monetary Fund (IMF) on the Climate Resiliency Fund, describing them as promising steps toward securing vital funding.
The Green Action Bond builds upon Pakistan’s earlier success with the WAPDA Green Bond, which saw significant investor interest and was oversubscribed six times. The new bond aims to attract both local and international financing to support green projects.
Aurangzeb acknowledged the need for structural enablers such as a well-defined bond yield curve, secondary market liquidity, and a robust green taxonomy framework. He welcomed the State Bank of Pakistan’s initiative to introduce such a framework, which will standardize project assessments, monitoring, and reporting at an international level.
The finance minister also emphasized the critical role of the private sector in advancing the green finance agenda. He recognized the successful digitalization of financial systems, led by institutions like Karandaaz, as a key factor in ensuring transparency and efficiency in funding allocation.
Aurangzeb expressed gratitude to international partners and development agencies for their continued support in Pakistan’s climate resilience initiatives. He concluded by stating that the launch of the Green Bond represents a crucial milestone in the country’s journey toward a sustainable and economically secure future.
