The Islamic Republic of Pakistan introduced its Sovereign Sustainable Finance Framework as a step towards enhancing its sustainability commitment and developing a formal mechanism for issuing Sustainable Financing Instruments, such as green, social, and sustainability-linked bonds and sukuks.
The move is intended to enhance Pakistan’s contribution to the international sustainable finance market while supporting the development of a robust domestic sustainable finance ecosystem.
The Framework has been constructed in collaboration with Citi Bank and Deutsche Bank as Joint Sustainability Coordinators. The Framework is compatible with global best practice, such as the International Capital Market Association (ICMA) principles on green, social, and sustainability bonds, the Loan Market Association principles for green and social loans, and international guidelines by prominent global institutions on blue bonds.
Sustainable Fitch has issued an independent Second Party Opinion (SPO) for ensuring transparency and credibility.
Pakistan initiates first sovereign platform to mobilize green and social funding
The agency certified Pakistan’s Framework as “Excellent,” denoting its good conformity to international best practices in sustainable finance. The SPO is publicly accessible on the Ministry of Finance website for reference purposes.
Through the Framework, the Government of Pakistan is able to issue a broad array of Sustainable Financing Instruments such as bonds and international sukuks.
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The Framework will be in effect until it is revised from time to time to capture changing market practices and the advancement of Pakistan’s ESG agenda.
It is hoped that the new Framework will increase its access to international sustainable finance, which will ultimately contribute to Pakistan’s transition to a more resilient, inclusive, and sustain
