Finance Minister Muhammad Aurangzeb on Wednesday said Pakistan is actively pursuing diversified funding avenues, including green bonds and sukuk, to support its climate resilience and energy transition goals.
Addressing a climate change conference in Islamabad, he said the country has access to around $600 to $700 million in climate finance. This “green financing,” he said, it very important as it enables the government to diversify its funding base.
According to the minister, Pakistan expects to receive around $200 million from the International Monetary Fund (IMF), while the Asian Development Bank (ADB) was also extending assistance to the country. He reiterated that the government would proceed for its inaugural Panda bond this month for around $250 million equivalent in Renminbi.
Aurangzeb stressed the need for a pragmatic approach, urging stakeholders to effectively utilize currently available resources instead of focusing on large, theoretical financing gaps. He said discussion about gaps are academic at this stage, adding deploying available funds efficiently should be prioritized.
Referring to international practices, Aurangzeb said China’s rapid growth in green finance, nearly 40% of global green bond issuance, provided valuable lessons to Pakistan. He also acknowledged the support of international experts in helping Pakistan develop a green investment pipeline and accelerator framework.
Highlighting broader economic and energy priorities, the finance minister emphasized that Pakistan must move beyond maintaining commercial reserves and work toward establishing strategic reserves, while accelerating the transition to renewable energy. He called for scaling up investments in solar, wind and hydropower projects to reduce reliance on fossil fuels. Ongoing initiatives, such as energy efficiency measures, electric vehicle promotion, subsidies and risk-sharing mechanisms, support the transition, he added.
Aurangzeb called for greater reliance on indigenous resources, stressing the need to strengthen domestic capital markets and reduce overdependence on bank financing. He also highlighted the importance of mobilizing resources through Pakistan’s capital markets, and channeling them toward green investment and sustainable finance.