Karandaaz Pakistan, a not-for-profit, is championing the cause of financial inclusion and sustainable development in Pakistan. Supported by the UK’s Foreign, Commonwealth, and Development Office (FCDO) and the Gates Foundation, Karandaaz is leveraging innovation and technology to address some of the most critical challenges of our time, including climate change.

Karandaaz delivers its green financing agenda through a two-tiered approach. The first tier focuses on scaling established technologies that directly impact clean energy and energy efficiency. As per Karandaaz’s internal assessments, they have supported small and medium sized enterprises (SMEs) in generating 20MWs of clean energy across the textile, SME, and household sectors and financed the production of 1,927 energy-efficient power distribution transformers for DISCOs (GEPCO, MEPCO, and PESCO), saving 7,742MWh of electricity annually.

The company has also committed to constructing Pakistan’s first LEED or BREEAM-certified green building in Karachi and launching the country’s first-of-its-kind Green Real Estate Investment Trust (Green REIT), specifically designed to encourage small investors to contribute to sustainable real estate projects. To date, Karandaaz has committed approximately Rs3 billion under this vertical.

The second tier, driven by the GreenFin Innovations program launched in 2021, supports groundbreaking solutions that address critical climate challenges. This initiative focuses on three key thematic areas: efficient water management and conservation in industrial, agricultural and domestic sectors; efficient plastic waste management; and clean air. Karandaaz is fostering innovations that promise long-term impact with over Rs300 million allocated to 11 innovative projects under this program.

In addition to financing, Karandaaz is actively addressing knowledge gaps in the climate change agenda. The company has commissioned several independent studies, including climate smart low-income housing in Pakistan, opportunities and challenges of renewable energy in Pakistan and the upcoming launch of the latest study: carbon credits trading of exploring landscape and regime in Pakistan. These research initiatives are guiding stakeholders toward sustainable decision-making and policy formulation.

Karandaaz, through its wholly-owned subsidiary Parwaaz Financial Services Limited, has also issued Pakistan’s first private-sector Green Bond. This milestone initiative mobilises private capital for renewable energy, sustainable agriculture and clean transportation projects, directly contributing to Pakistan’s Nationally Determined Contributions (NDCs). The bond framework aligns with the Green Bond Principles (GBP) of the International Capital Market Association (ICMA) and guidelines set by the Securities and Exchange Commission of Pakistan (SECP) and it is governed by an independently validated framework that has secured a satisfactory opinion from the Pakistan Environment Trust.

Karandaaz Pakistan remains committed to creating a sustainable and resilient future for Pakistan. By combining financial innovation with impactful climate initiatives, Karandaaz is paving the way for a greener tomorrow.

For more information about Karandaaz, visit their website. If you are interested in obtaining green financing, submit your application on gfi.karandaaz.com.pk.

To learn more about their work, you can follow them on LinkedIn and Instagram.

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