ISLAMABAD, May 03, The government is set to issue green bonds in
the Pakistan Stock Exchange (PSX) during the third week of May to fund
environmentally friendly projects.
According to sources, this initiative is a key condition of the
International Monetary Fund’s (IMF) new $1.3 billion Climate Resilience
loan program, spanning 28 months.
Pakistan aims to raise Rs30 billion through the PSX to address funding
challenges for eco-friendly projects, including the issuance of Rs30
billion in Sukuk bonds for three hydropower projects, sources revealed.
Sources further said that the green bonds will finance hydropower
projects in Sindh, Balochistan, and Gilgit-Baltistan, specifically the
Skardu Hydro, Balochistan Nai Gaj Hydro, and Sindh Hydro projects.
Under the IMF program, Pakistan is expected to receive $1 billion on May
9, sources added.
It is worth mentioning here the International Monetary Fund’s (IMF)
Executive Board meeting is scheduled for May 9, with Pakistan listed on
the official agenda.
During the meeting, the IMF board is expected to approve a disbursement
of $1.1 billion for Pakistan under the ongoing financial program.
According to IMF statement, first Review under the Extended Arrangement
under the Extended Fund Facility, the request for modification of
performance criteria, and the request for an arrangement under the
Resilience and Sustainability Facility are scheduled to take place on
May 9.
Meanwhile, Pakistan also secured $1.3 billion in climate financing from
the International Monetary Fund.
Last month, Pakistan and the International Monetary Fund reached a
staff-level agreement on the first review under Pakistan’s 37-month $7bn
Extended Fund Facility (EFF) and on a new 28-month $1.3bn arrangement
under the Resilience and Sustainability Facility (RSF), the federal
government and the IMF confirmed.