This study examines the role of green finance in advancing sustainable transportation in Pakistan through a qualitative case study approach. As transportation increasingly affects climate mitigation, urban liveability, public health, and smart mobility transitions, the need for context-specific financing solutions has become more urgent in developing countries. The study draws on semi-structured interviews with 10 stakeholders from government, finance, academia, civil society, and transport-related institutions, supported by secondary analysis of policy documents and relevant literature. Thematic analysis identified four major themes: institutional barriers, policy misalignments, financing mechanisms and gaps, and global lessons for adaptation. The findings show that although Pakistan has made progress in developing a regulatory architecture for green finance through green bond guidance, Green Sukuk initiatives, and climate-related financial reforms, this progress has not yet translated into a coherent transport-focused financing ecosystem. Institutional weakness, fragmented federal–provincial governance, weak project-preparation capacity, and poor alignment between transport and financial policy continue to constrain implementation. The study further finds that financing needs are sector-specific and that instruments such as green bonds, green sukuk, blended finance, and public–private partnerships must be tailored to different transport subsectors. The study concludes that Pakistan requires a phased, context-sensitive strategy that aligns institutions, policies, and financial tools to support sustainable transportation and its broader benefits for health, urban liveability, and smarter mobility systems.