Sustainable Fitch Grants Pakistan “Excellent” Rating for Green Financing Framework

September 22, 2025 |

Pakistan’s sustainable financing framework has been awarded an “Excellent” alignment score by Sustainable Fitch, which issued its Second-Party Opinion confirming full compliance with international standards.

The framework is aligned with the ICMA’s Green Bond Principles, Social Bond Principles, and Sustainability Bond Guidelines, as well as the Green and Social Loan Principles of the LMA, LSTA, and APLMA.

This robust framework will guide the issuance of sustainability bonds and loans, channeling funds into nine green categories—including renewable energy, energy efficiency, clean transportation, and climate change adaptation—and six social categories covering affordable housing, infrastructure, and poverty alleviation.

Sustainable Fitch emphasized that the framework ensures clear environmental and social benefits, with green initiatives linked to international taxonomy criteria and social projects aligned with Pakistan’s multidimensional poverty index to benefit vulnerable communities.

With Pakistan’s 236 million population and a $338 billion GDP facing pressing climate risks, the framework highlights the importance of Indus River Basin protection and restoration, critical for 90% of the population and 80% of farmland.

Additionally, renewable energy, energy efficiency, and clean transport projects will contribute toward Pakistan’s NDC climate targets—a 15% unconditional reduction in greenhouse gas emissions by 2030, with a conditional 35% reduction dependent on global financial support.

The recognition from Sustainable Fitch is expected to enhance investor confidence in Pakistan’s upcoming sustainable debt issuances, reinforcing the country’s commitment to climate resilience and inclusive development financing.