Prime Minister Imran Khan launched, on Monday, the country’s first-ever green Eurobond by the Water and Power Development Authority, in a bid to meet the financial needs for the construction of the Mohmand and Diamer-Bhasha dam projects.
It has been floated for a period of 10 years to raise $500 million. The bonds are set at a competitive price of 7.5 percent interest rate.
Experts say the bond issuance is a positive development for the country’s economy, which is growing at 3.94%. It is a sharp comeback from the contraction in the previous fiscal years.
It will also give Pakistan a breathing space as it looks to muster more environmentally-friendly debt in the next two years, as per Wapda Chairman Muzammil Hussain.
The funds from the bond are to be used in the Diamer Basha and Mohmand dams, as Pakistan looks to take lead against the usage of fossil fuels.
The prime minister appreciated the WAPDA chief and his team for this achievement of securing bonds in the international market.
While expressing his thoughts at the launch ceremony at the Prime Minister’s House, PM Khan expressed satisfaction over the interest of international investors in Eurobond, saying it showed their confidence in the government and Pakistan’s economic status.
He appreciated the authority for the pace of construction of dams and said that the projects were “vital to produce clean energy” for a healthier environment.
Khan said the “decade of dams” project, started in 2018, should have been planned five decades ago to ensure water security.
“Unfortunately, Pakistan’s biggest weakness is the planning and implementation of projects. In my government, I have observed that things suffer when it comes to implementation,” he said.
The issuance of bonds comes at a time when investors are eyeing green debt, as Pakistan’s plans to give renewable and hydroelectric power generation a greater thrust.