https://twitter.com/home https://www.facebook.com/Shabbir.Hussain191By Shabbir Hussain
ISLAMABAD, April 11 (Alliance News): The government has decided to issue green bonds worth Rs 30 billion on the Pakistan Stock Exchange this month to finance projects aimed at combating climate change.
According to media reports, these green bonds will be the first of their kind issued on the local exchange and are being launched in consultation with the International Monetary Fund (IMF).
The bonds, with a maturity period of approximately three years, will be issued after approval from the federal cabinet.
This initiative is part of Pakistan’s commitment under the IMF’s $1.30 billion Resilience and Sustainable Funds (RSF) program, which requires the country to mobilize financing from local and international sources to support climate-related projects.
Only after fulfilling this condition will Pakistan be eligible to receive the first tranche of the RSF.
Meanwhile, the government has postponed plans to issue $300 million worth of Panda Bonds in the Chinese market during the current fiscal year. Earlier scheduled for the first quarter, then moved to the second, the issuance has now been deferred.
Finance Minister Muhammad Aurangzeb had requested a guarantee from China’s Export and Credit Insurance Corporation during his July visit to Beijing to facilitate the issuance.
Additionally, Eurobonds worth $1 billion remain part of Pakistan’s external financing strategy.
The Ministry of Economic Affairs Division has confirmed that the issuance of Panda Bonds will no longer be part of the current fiscal year’s plan. The IMF agreement outlines 13 specific targets that must be met to receive the full RSF amount.
