Advisor to the Finance Minister, Mr. Khurram Schehzad, stated that the Green Sukuk initiative marks a significant step forward as Pakistan aligns itself with the global community of climate-conscious nations. He emphasized that the country is poised to actively participate in the global green movement. Mr. Schehzad shared these views while chairing the inaugural briefing and interactive session on the "Sovereign Domestic Green Sukuk," organized by the Ministry of Finance in collaboration with the Pakistan Stock Exchange (PSX), held at the PSX premises in Karachi. The event was attended by Dr. Shamshad Akhtar, Chairperson PSX; Mr. Farrukh Sabzwari, Managing Director & CEO PSX; Mr. Eraj Hashmi, CFA and Director Debt, Ministry of Finance; and Ms. Rabia Ahmed along with Mr. Khaliq Uz Zaman from the Debt Management Office, Ministry of Finance. In his address, Mr. Schehzad underscored that Pakistan is taking decisive steps to stimulate economic growth and attract investments. He noted that although difficult decisions were required, these were necessary for the long-term benefit of the economy. He also highlighted the abundant investment opportunities across various sectors in Pakistan. The Advisor mentioned that Pakistan had achieved a fiscal surplus for the first time in 24 years, crediting the performance of the Debt Management team for this milestone. He elaborated on the structural reforms underway, including right-sizing of government departments, privatization efforts, pension reforms, better management of State-Owned Enterprises (SOEs), and energy sector improvements. He stated that the government is working to consolidate 43 ministries and departments, either through mergers, closures, or devolution to the provinces. He also mentioned the ongoing privatization of Pakistan International Airlines (PIA), stressing that necessary reforms in the aviation sector must precede the process to ensure its success. Mr. Schehzad noted that independent boards have been established for SOEs, and that efforts in the energy sector have already resulted in reduced prices, with further decreases expected. He further shared that discussions were underway with international impact funds, which have shown strong interest in the Green Sukuk initiative. Responding to a query, he clarified that the challenges were not within the banking sector per se, but related to teething issues concerning the buying, selling, and transfer of securities within the broader financial sector. He assured the audience that these issues would be resolved at the earliest. Speaking on the occasion, Dr. Shamshad Akhtar, Chairperson PSX, highlighted the significant innovation in Islamic finance over the years. She emphasized the need for more investors and advocates to help raise awareness about Sukuk instruments. Dr. Akhtar stated that efforts are being made at both national and international levels, with plans to engage institutions and universities to enhance understanding and education around this financial instrument. Mr. Farrukh Sabzwari, MD & CEO PSX, also addressed the gathering and stressed the importance of collaborative efforts. He mentioned that a gamification strategy is being employed to promote financial literacy and awareness regarding the Green Sukuk. Mr. Eraj Hashmi, CFA and Director Debt, Ministry of Finance, stated that the Debt Management Office (DMO) is making all-out efforts to manage public debt efficiently. He emphasized the importance of ensuring sustainability and flexibility of the public debt portfolio, with a prudent and balanced mix of instruments and maturities.
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