The Asian Development Bank (ADB) and the Agency Francaise de Development (AFD) has approved over $400 million in loans to support Pakistan’s efforts to offer a more reliable and secure energy sector. ADB aid of $300 million, the third such loan under the Sustainable Energy Sector Reform programme, the bank’s total financing to $1 billion since 2014. AFD will add €100 million in the co-financing.
Xiaohong Yang, ADB’s country director for Pakistan, and Tariq Mahmood Pasha, Secretary economic affairs division, for the government of Pakistan, signed the loan agreement. Finance Minister Ishaq Dar witnessed the signing ceremony.
Yang said, “Pakistan’s ambitious energy reform programme demonstrates the government’s commitment to improving reliability, sustainability, and affordability of the energy sector”. “Keeping the momentum for reform will help to ensure that all Pakistanis have access to electricity while keeping the economy on an inclusive, sustained growth path”, she added.
Under the programme, Pakistan has embarked on a substantial reform initiative that will reduce energy subsidies and adjust tariff policy, improve sector performance, and open the market to private participation, and increase accountability and transparency.
“As co-financing partner in the reforms project, AFD is committed to promoting green energies in Pakistan through investments in low carbon emission energy generation in line with COP21 Paris agreement approved by the Parliament of Pakistan”, said Jacky Amprou, AFD country director for Pakistan.
ADB and AFD are committed to supporting the government of Pakistan’s strategy to resolve the energy crisis and to fight climate change, including through Vision 2025, Pakistan’s comprehensive plan for profitable growth.
The plan is aimed at increasing the power generation, provide uninterrupted electricity to all, and improve demand management. The Manila-based ADB is devoted to reducing poverty in Asia and the Pacific through inclusive economic growth, environmentally sustainable growth, and regional integration. Established in 1966, the bank is celebrating 50 years of development partnership in the region. 67 members own it — 48 from the region. In 2016, ADB aid amounted to $31.7 billion, including $14 billion in co-financing.