Green Sukuks in Pakistan - Financing the Future
Abstract/Description
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.
Keywords
Green financing, Green sukuk, Green sukuk structure, Sustainable responsible investment, Islamic Finance, Islamic bonds, Climate finance
Track
Finance
Session Number/Theme
3B: Finance
Session Chair
Dr. Saqib Sharif; Dr. Nauman J. Amin
Start Date/Time
27-5-2023 2:30 PM
End Date/Time
27-5-2023 4:30 PM
Location
MCS-4, AMAN-CED, First Floor
Recommended Citation
Zafar, A., Ahmad, F., & Saba, I. (2023). Green Sukuks in Pakistan - Financing the Future. 3rd IBA SBS International Conference 2024. Retrieved from https://ir.iba.edu.pk/sbsic/2023/program/47
COinS
Green Sukuks in Pakistan - Financing the Future
MCS-4, AMAN-CED, First Floor
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.
