ISLAMABAD: As Pakistan faces the dual threat of extreme heatwaves and devastating hailstorms—hallmarks of its worsening climate vulnerability—experts and regulators at a high-level seminar in Islamabad called for urgent mobilisation of green finance through domestic capital markets to build climate-resilient infrastructure that also protects public health.
The seminar, titled “Green Financing via Debt Capital Markets,” was jointly organised by InfraZamin Pakistan, the Securities and Exchange Commission of Pakistan (SECP), the Private Infrastructure Development Group (PIDG), and UK International Development (UKID). It brought together key stakeholders from regulatory bodies, investment firms, and international development agencies to explore capital market-driven solutions to Pakistan’s growing environmental and health challenges.
“In a country ranked 164th on the Human Development Index and lagging in health, gender, and climate indicators, we must turn inward to find financing solutions,” said Maheen Rahman, CEO of InfraZamin Pakistan. “Donor aid is drying up. Now is the time to activate local capital to fund climate-resilient, health-aligned infrastructure.”
Rahman underscored that a robust green finance framework would not only draw private sector investment and strengthen banking and capital markets but also generate public health benefits by addressing issues like air pollution, water quality, and climate-induced displacement.
The event featured prominent speakers including Akif Saeed, Chairman SECP; Jo Moir, Development Director at the British High Commission Islamabad; Boo Hock Khoo, Chairman, InfraZamin Pakistan; Philip Skinner, Origination Lead for Nature at PIDG; and Waqas ul Hasan, CEO of Karandaaz Pakistan.
Their discussions focused on leveraging innovative financial instruments, such as rupee-denominated green bonds and credit guarantees, to attract private capital into sustainable infrastructure.
“Green financing through local markets is a transformative step for Pakistan,” said Boo Hock Khoo, adding that InfraZamin’s provision of credit guarantees for bond issuance is vital to instilling investor confidence and scaling up climate-aligned projects.
SECP Chairman Akif Saeed reiterated the regulator’s commitment to supporting financial innovation and transparency. “We encourage the private sector to adopt global disclosure standards like S1 and S2, and we recognise the role of credit enhancement and blended finance in expanding investor participation,” he said.
British High Commission’s Jo Moir emphasised the global shift toward sustainable finance, noting that Pakistan can position itself as a leader in the region by integrating global trends and tools. “The UK is partnering with Pakistan to foster a greener, more climate-resilient future,” she added.
Farrukh Subzwari, CEO of the Pakistan Stock Exchange, pointed out that the global issuance of sustainability-labeled bonds reached $1.1 trillion in 2023–24, reflecting rising investor preference for ESG-aligned investments. “Sustainability frameworks are no longer optional—they are essential,” he remarked.
Highlighting practical examples, Philip Skinner shared how PIDG helped mobilize private capital for Africa’s first green bond—Acorn—which funded safe and environmentally sound student housing in Nairobi.
Participants agreed that scaling up domestic green finance is critical not just for economic resilience but also for building healthier, safer urban and rural environments.
The event concluded with a collective commitment to embed sustainability in financial systems and to use capital markets as catalysts for both environmental protection and improved public health.