In line with recent economic developments, Pakistan launched a new financial initiative in May 2025: the Green Sukuk Bond. Issued in accordance with Islamic Shariah principles, this bond aims to attract both national and international investments to fund environmentally sustainable projects across the country. Unlike traditional bonds, the Green Sukuk is interest-free and operates on profit-sharing and contract-based mechanisms, aligning Islamic finance with modern sustainability goals.

To operationalize this, the Government of Pakistan introduced the Sukuk through the Pakistan Stock Exchange (PSX), targeting a total of Rs52 billion. The initial offering, valued between Rs20 and Rs30 billion, was launched under the Sustainable Investment Sukuk Framework (Profit, Pakistan Today, April 22, 2025). This framework, approved by the federal cabinet, emphasizes transparency and mandates that all funds be directed solely toward environmentally sustainable projects to foster a greener Pakistan (Dawn News, April 24, 2025).

Moreover, four leading Islamic banks—Meezan........

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