The Islamic Republic of Pakistan has unveiled its Sovereign Sustainable Finance Framework, marking a major milestone in the nation’s commitment to environmental and social governance.

This strategic move aims to bolster Pakistan’s presence in the global sustainable finance arena and cultivate a thriving ecosystem for sustainable financial practices, the Ministry of Finance informed today..

The Framework, developed in collaboration with Citi Bank and Deutsche Bank as Joint Sustainability Coordinators, adheres to renowned international standards. It aligns with the International Capital Market Association (ICMA) principles for green, social, and sustainability bonds, as well as loan market association guidelines for green and social loans. Additionally, it incorporates blue bond guidelines from leading global institutions, ensuring a comprehensive and credible approach.

A testament to its credibility, Sustainable Fitch has awarded an independent Second Party Opinion (SPO) rating the Framework as ‘Excellent.’ This recognition underscores the Framework”s robust alignment with global best practices in sustainable finance. The SPO is accessible to the public on the Ministry of Finance’s website, promoting transparency and accountability.

The newly launched Framework will govern all Sustainable Financing Instruments issued by the Pakistani government, including bonds and international sukuks. It will remain active until revised to keep pace with evolving market trends and Pakistan’s ongoing ESG agenda. This landmark initiative is anticipated to enhance Pakistan’s access to international sustainable finance, thereby expediting the nation”s shift to a more robust and inclusive economy.