ADB, AFD approve $400mln to accelerate energy reforms

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APP26-16 ISLAMABAD: June 16 - Finance Minister, Senator Mohammad Ishaq Dar witnessing a Loan Signing Agreement Between Pakistan And Asian Development Bank for the Financing Of The Sustainable Energy Sector Reform Program. APP

ISLAMABAD, Jun 16 (APP): The Asian Development Bank (ADB) and
the Agence Francaise de Development (AFD) Friday approved over $400
million in loans to support Pakistan’s efforts to provide a more
reliable and secure energy sector.
The $300 million in ADB assistance, the third such loan under the Sustainable Energy Sector Reform program, brings the bank’s total financing to $1 billion since 2014. AFD will add Euro 100 million in cofinancing.
Xiaohong Yang, ADB’s Country Director for Pakistan and Tariq Mahmood Pasha, Secretary Economic Affairs Division (EAD) signed the
ADB loan agreement. Finance Minister Mohammad Ishaq Dar witnessed the signing.
“Pakistan’s ambitious energy reform program demonstrates the
government’s commitment to improve the reliability, sustainability,
and affordability of the energy sector,” said Ms. Yang.
“Maintaining the momentum for reform will help ensure that all
Pakistanis have access to electricity, while keeping the economy on
an inclusive, sustained growth path,” Yang added.
Under the program, Pakistan has embarked on a substantial
reform initiative that would reduce energy subsidies and adjust
tariff policy, improve sector performance and open the market to
private participation, and increase accountability and transparency.
The reform measures aim to address financial viability and
reduce costs to taxpayers. Specific measures include recently agreed
legislation that will improve governance through more clearly
defined roles for both the government and the energy sector
regulator, and reduce debt levels in the energy sector.
“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 is Pakistan’s largest development partner in the energy
sector with a focus on investments, reforms to strengthen governance
and promote structural transformation, effective implementation of
projects and programs, capacity development, and promotion of
regional power and gas trading initiatives.
For the last ten years, AFD has been 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.
ADB and AFD are committed to support the Government of
Pakistan’s strategy to solve the energy crisis and to fight climate
change, including through Vision 2025, Pakistan’s comprehensive plan
for economic growth.
The plan aims to increase power generation, provide
uninterrupted electricity to all, and improve demand management.