Student Name

Aizah ZafarFollow


Master of Science in Islamic Banking & Finance


Department of Finance

Faculty/ School

School of Business Studies (SBS)

Date of Submission

Spring 2023


Dr. Irum Saba, Associate Professor & Program Director MS-IBF, Institute of Business Administration, Karachi


Dr. Fawad Ahmad, Assistant Professor, Department of Finance, School of Business Studies (SBS)


The term “Green Sukuks” has gained immense attention in the Islamic finance industry around the globe. Many Islamic countries like Indonesia, Malaysia and Qatar has realized the potential of the green economy with the combination of shariah complaint green modes of financing like Green Sukuks. This paper aims to explore the reasons due to which green sukuks have not been issued as of now in Pakistan. The study focused on highlighting the major hindrances that are being faced by issuers and investors of green sukuks. Few of the major challenges were the lack of understanding and awareness of the market participants regarding the concept of green sukuks. Other hindrances included lack of legislative framework, the immature capital markets of Pakistan and political instability of the country etc. A qualitative technique comprising of semi-structured interviews has been applied in this study. As this concept is nascent is nature and has a lot of potential, therefore immediate intervention from the Government and policymakers is required, for which a list of recommendations has also been put forward to intensity the growth of the issuance of green sukuks in Pakistan.

Document Type

Restricted Access

Submission Type


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