Adviser to the Finance Minister Khurram Schehzad on Wednesday described the government’s Green Sukuk initiative as a significant step forward in aligning the country with the global community of climate-conscious nations.
Chairing the inaugural briefing and interactive session on the “Sovereign Domestic Green Sukuk,” organized by the Ministry of Finance in collaboration with the Pakistan Stock Exchange, he stressed Pakistan is taking decisive steps to stimulate economic growth and attract investments. Acknowledging that difficult decisions were required, he said these were essential for the long-term benefit of the economy. He also highlighted the abundant investment opportunities across various sectors in Pakistan.
Noting Pakistan had achieved a fiscal surplus for the first time in 24 years, he credited the Debt Management team for this milestone. On underway structural reforms, he said the government was rightsizing various departments, pursuing privatization, reforming pensions, and improving the management of State-Owned Enterprises and the energy sector.
Schehzad said the government is working to consolidate 43 ministries and departments, either through mergers, closures, or devolution to the provinces. He said necessary reforms in the aviation sector must precede the ongoing privatization of Pakistan International Airlines to ensure its success. He said independent boards had been established for SOEs, and that efforts in the energy sector have already resulted in reduced prices, with further decreases expected.
According to the adviser, discussions are underway with international impact funds, which have shown strong interest in the Green Sukuk initiative. To a question, he clarified that the challenges were not within the banking sector per se, but related to teething issues concerning the buying, selling, and transfer of securities within the broader financial sector. He assured the audience that these issues would be resolved at the earliest.
Addressing the event, PSX Chairperson Shamshad Akhtar highlighted the significant innovation in Islamic finance over the years. She emphasized the need for more investors and advocates to help raise awareness about Sukuk instruments. She said efforts are underway at both national and international levels, with plans to engage institutions and universities to enhance understanding and education around this financial instrument.
PSX CEO Farrukh Sabzwari stressed the importance of collaborative efforts, noting a gamification strategy is being employed to promote financial literacy and awareness regarding Green Sukuk.
Minister of Finance Director Debt Eraj Hashmi said the Debt Management Office is making all-out efforts to manage public debt efficiently. He emphasized the importance of ensuring sustainability and flexibility of the public debt portfolio, with a prudent and balanced mix of instruments and maturities.