HARNESSING GREEN FINANCE FOR SUSTAINABLE DEVELOPMENT IN PAKISTAN: UNLOCKING THE POTENTIAL OF ISLAMIC FINANCIAL SYSTEMS AND PUBLIC AWARENESS

Abstract

This study investigates the role of green finance in advancing sustainable development in Pakistan, with a particular focus on the potential of Islamic finance as a catalyst aligned with the Sustainable Development Goals (SDGs). Employing a quantitative research design, stratified sampling, and structured questionnaires, the study assesses public awareness, perceptions, and the perceived benefits and challenges of green finance. Results indicate a positive correlation between education levels and awareness of green finance, highlighting disparities across demographic segments. A conceptual framework positions green finance initiatives as the independent variable and sustainable development as the dependent variable, with financial institutions, regulatory frameworks, economic conditions, and public awareness acting as mediating and moderating factors. Despite promising opportunities, including international support and technological advancements, barriers such as weak regulatory structures, limited awareness, and financial constraints hinder progress. The study concludes that green finance can significantly enhance sustainable development in sectors like renewable energy, agriculture, and environmental protection, provided that institutional and awareness-related barriers are effectively addressed. The findings offer actionable insights for policymakers, financial institutions, and stakeholders integrating green finance into Pakistan’s development strategy.

Keywords: Green Finance, Sustainable Development, Islamic Finance, Public Awareness, Regulatory Framework