PAKISTAN
In a landmark move to combat climate change and strengthen food security, InfraZamin Pakistan, Sunridge Foods (Pvt.) Limited and BankIslami have launched Pakistan’s first fully subscribed Rs2 billion Agri-Infrastructure Sukuk at the Pakistan Stock Exchange (PSX).
This Shariah-compliant, climate-aligned financial instrument marks a new era of sustainable, Islamic capital market development aimed at transforming Pakistan’s agri-sector.
The Sukuk—backed by a 100% principal credit guarantee from InfraZamin and carrying a AAA rating—was fully subscribed by institutional investors. It represents a critical step in mobilizing green finance to respond to the dual challenges of climate vulnerability and agricultural inefficiency.
Mobilizing Green Capital for Resilient Agriculture
Proceeds from the Sukuk will power Sunridge Foods’ climate-smart modernization plan, including:
• Installation of 1MW wind turbines and a 0.5MW solar power plant, dramatically reducing carbon emissions in food production.
• Construction of climate-resilient silos and warehouses, bolstering storage infrastructure against extreme weather events.
• Support for wheat and rice processing facilities in Karachi and Lahore, securing local food systems amid growing climatic disruptions.
This financing structure not only strengthens Pakistan’s agricultural backbone but also lays the groundwork for a low-carbon, climate-resilient future.
Leadership Voices: Climate, Finance & Resilience
Lance Domm, Deputy British High Commissioner, hailed the Sukuk as a “significant step in expanding access to climate-friendly, Shariah-compliant finance in Pakistan’s agri-infrastructure sector,” underlining the UK’s continued support for Pakistan’s climate-aligned financial system.
Maheen Rahman, CEO of InfraZamin, emphasized, “This transaction reflects our mission to unlock sustainable finance for agriculture—Pakistan’s most climate-exposed sector. Our guarantee mechanism gives investors confidence to back long-term resilience.”
Amir Shahzad, Chairman of Sunridge Foods, highlighted the operational and environmental impact: “This Sukuk enables us to adopt clean energy, modernize food systems, and address the urgent climate risks facing Pakistan’s agriculture.”
Rizwan Ata, President & CEO of BankIslami, noted, “Shariah-compliant finance must be a key pillar in driving economic transformation rooted in sustainability. We are proud to lead the way.”
Capital Market Innovation for Climate Action
Dr. Shamshad Akhtar, Chairperson of PSX, described the initiative as “a bold, homegrown solution to Pakistan’s intersecting crises of climate change and food insecurity.” She underscored that private-sector leadership, paired with Islamic finance, can mobilize long-term capital for transformative climate outcomes.
Farrukh Subzwari, CEO of PSX, added, “Sustainable finance is not a buzzword—it’s a necessity. The Agri-Infrastructure Sukuk is just the beginning. Real change requires collective action across regulators, corporates, investors, and financial institutions.”
Governance and Climate Accountability
The Sukuk structure was fortified through:
• BankIslami as the Mandated Lead Arranger,
• InfraZamin’s credit guarantee,
• AKD Securities as Financial Advisor,
• Al-Hilal Shariah Advisors for Shariah compliance, and
• Pak Brunei Investment Company as Investment Agent and Trustee.
This layered oversight ensures environmental, financial, and ethical integrity.
A Climate-Conscious Future for Finance
This landmark Sukuk is more than a financial instrument—it’s a climate-resilient development model. It showcases how Islamic finance, when aligned with sustainability, can be a powerful tool to climate-proof economies, secure food systems, and create inclusive growth.
As Pakistan faces worsening climate extremes, such as heatwaves, droughts, and erratic rainfall, initiatives like this bridge the gap between environmental urgency and financial innovation, helping turn climate commitments into concrete, community-centered solutions. – ER NEWS DESK
