In a significant push towards climate-resilient and sustainable development financing, the Securities and Exchange Commission of Pakistan (SECP), in partnership with InfraZamin, UK International Development, and the Private Infrastructure Development Group (PIDG), convened a seminar focused on the potential of debt capital markets in advancing green financing. The event spotlighted how innovative financing mechanisms, especially through green bonds and credit enhancements, can support Pakistan’s transition to a low-carbon economy.
The seminar titled “Green Financing via Debt Capital Markets” brought together stakeholders from the financial sector, regulatory authorities, development institutions, and the private sector. The core discussions revolved around leveraging debt capital markets to mobilize funding for environmentally sustainable projects while exploring solutions to mitigate risk for investors.
One of the key themes of the seminar was credit enhancement—a mechanism designed to reduce the risk profile of green bonds and improve their attractiveness to institutional investors, including insurance firms and asset managers. By reducing perceived risks, credit enhancements serve as a crucial enabler for channeling long-term capital into green infrastructure and climate-aligned development.
Speakers from SECP emphasized the regulatory body’s commitment to enabling innovation in Pakistan’s capital markets, highlighting reforms aimed at improving market transparency, efficiency, and accessibility. The Chairman of the SECP, along with the Commissioner of the Specialized Companies Division, reiterated the SECP’s focus on streamlining the bond issuance process by reducing both cost and time-to-market. They also encouraged the adoption of robust disclosure practices to build investor confidence and broaden market participation.
The societal benefits of green financing were extensively discussed, with emphasis on how such instruments can accelerate Pakistan’s climate action agenda while contributing to economic development. The seminar also underscored the importance of collaboration across sectors—public, private, and multilateral—to foster an ecosystem where sustainable finance can thrive.
Participants from PIDG, GuarantCo, and the British Council shared case studies from other emerging economies where credit enhancement tools successfully unlocked large-scale investment in green projects. These success stories demonstrated that strategic risk mitigation not only boosts investor confidence but also makes such instruments accessible to a broader range of financiers.
InfraZamin, a pioneering institution working on infrastructure financing in Pakistan, played a central role in demonstrating how local credit guarantees can align international investment standards with domestic development needs. Their contributions emphasized that a vibrant debt capital market, underpinned by strong governance and innovative financial tools, is critical to meeting the country’s climate goals.
Throughout the session, stakeholders called for greater alignment between regulatory reforms, private sector readiness, and international development support to scale green bond issuance. The seminar concluded with a forward-looking commitment to developing new financing frameworks that support Pakistan’s green transition.
The event not only elevated the discourse around sustainable finance in Pakistan but also paved the way for actionable reforms and partnerships, marking a vital step in integrating climate-conscious strategies into mainstream capital market development.