KEY POINTS
- Framework sets structured path for green, social, and sustainability bonds
- Citi and Deutsche Bank act as joint sustainability coordinators
- Sustainable Fitch rates framework as “Excellent” with SPO validation
- Initiative aimed at improving access to global sustainable finance
ISLAMABAD: Pakistan has introduced its Sovereign Sustainable Finance Framework to strengthen its commitment to sustainability and build a structured approach for raising green, social, and sustainability-linked financing instruments.
The Ministry of Finance announced that the initiative is designed to expand Pakistan’s participation in the global sustainable finance market while supporting the growth of a domestic sustainable financing ecosystem.
International standards and collaboration
According to the Finance Division, the framework has been developed in collaboration with Citibank and Deutsche Bank as joint sustainability coordinators.
It is fully aligned with international benchmarks, including the International Capital Market Association (ICMA) principles for green, social, and sustainability bonds, the Loan Market Association principles for green and social loans, and emerging blue bond guidelines.
Independent opinion and rating
To ensure transparency, Sustainable Fitch has issued an independent Second Party Opinion (SPO) for the framework.
The opinion, which is publicly available on the Ministry of Finance’s website, has assigned the framework an “Excellent” rating — the highest tier, reflecting alignment with global best practices in sustainable finance.
Application and long-term scope
The framework will apply to all future sustainable financing instruments, including sovereign bonds and international sukuks, issued by the Government of Pakistan.
Officials stated that the framework will be periodically updated to stay aligned with evolving market practices and Pakistan’s broader ESG agenda.
Economic outlook and financing access
Analysts told Business Recorder that the move is expected to improve Pakistan’s access to international sustainable finance at a time when the country faces significant external financing needs.
Financial experts cited by Reuters added that such instruments could help accelerate Pakistan’s transition toward a more resilient and inclusive economy, while enhancing investor confidence in the government’s sustainability commitments.
