KARACHI: Pakistan on Tuesday announced the launch of its first Sovereign Sustainable Finance Framework, setting out guidelines for issuing green, social and other sustainability-linked instruments as part of efforts to boost access to international capital and advance its environmental, social and governance (ESG) agenda.
The framework, developed with Citibank and Deutsche Bank as joint sustainability coordinators, has been aligned with leading global standards such as the International Capital Market Association’s principles for green and social bonds and the Loan Market Association’s guidelines for sustainable lending.
“This strategic initiative is expected to improve Pakistan’s access to international sustainable finance, helping to accelerate the country’s transition toward a more resilient and inclusive economy,” the finance division said in a statement.
Credit rating agency Sustainable Fitch provided an independent review, giving the framework its highest grade of “Excellent” for alignment with global best practices.
The statement said the opinion had been published on the Ministry of Finance’s website.
The framework will apply to all sovereign sustainable financing instruments, including bonds and international sukuks, and will be updated periodically to reflect evolving market practices and Pakistan’s ESG commitments.
The initiative forms part of the government’s broader strategy to diversify funding sources and tap international capital markets, with plans to issue Panda Bonds, to help ease fiscal pressures while showcasing the country’s shift toward green and inclusive growth.
