AFD to provide Euro 165 mln for energy sector development

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APP38-20 ISLAMABAD: July 20 - Finance Minister, Senator Mohammad Ishaq Dar witnesses as the Secretary EAD, Shahid Mahmood and French Ambassador Ms. Martine Dorance exchanging documents after signing Loan Agreement at Ministry Of Finance. APP

ISLAMABAD, July 20 (APP): Pakistan and French Agency for
Development (AFD) Thursday signed Euro 165 million soft loan
agreements to improve energy sector.
The agreements were signed by Secretary, Economic Affairs
Division (EAD), Shahid Mahmood, Ambassador of France, Martine
Dorance and Country Director French Agency for Development (AFD),
Jacky AMPROU.
Finance Minister, Senator Mohammad Ishaq Dar witnessed the
signing of loan agreements for financing of energy sector projects
including Power Transmission Enhancement Investment Tranche-IV and
Mangla Power Plant Rehabilitation Project.
Speaking on the occasion, Ishaq Dar appreciated the AFD’s continued
support and assistance for economic development of Pakistan.
He also lauded and welcomed AFD`s new strategy to develop and
open new sectors of cooperation like water and sanitation in Faisalabad,
Clean Energy project in Kyber Pakhtunkhwa and Punjab and Urban
Transport System in Kyber Pakhtunkhwa.
Ambassador of France Ms Martine Dorance said that France and
Pakistan enjoyed long history of cooperation and that the Government of France was pleased to support the Government of Pakistan in different areas.
She said relations of both the countries would further be promoted
in different sectors.
The main objective of the programme is to make energy sector
more affordable, reliable and sustainable, supporting the country’s
economic growth through expeditious implementation of the National
Power Policy, 2013.
Under these programs, the government has embarked on a substantial
reform initiative that aims to address financial sustainability issues in
the energy sector.
This includes recently passed legislation that will improve governance
through more clearly defined roles for both the government and the energy sector regulator, reducing debt levels in the energy sector, and increasing investment.
The energy reform program demonstrates government’s commitment
to improve the reliability, sustainability, and affordability of the energy
sector.
Maintaining the momentum for reform will help ensure that all
Pakistanis have access to electricity, while keeping the economy on a
high-growth path.