The Asian Development Bank (ADB) has sanctioned a $400m loan to support the Pakistan Government's efforts to overcome the chronic power crisis.
The ADB Central and West Asia Department director-general Klaus Gerhaeusser said, "The loan is part of an assistance program which will underwrite reforms needed to make the energy sector affordable, reliable, sustainable and secure.
"This in turn will accelerate industrial activity needed to boost economic growth and help create jobs, which are key to reducing poverty levels."
Pakistan is implementing the National Power Policy, which was approved in July 2013.
Meanwhile, the ADB, World Bank, and Japan are working together with the Pakistan government to develop a five-year plan and set milestones to implement the country’s policy.
The ADB will take the role of lead development organization in Pakistan’s energy sector that will support energy efficiency, transmission, distribution, cross-border natural gas pipelines, power generation, and renewable energy projects.
The sustainable energy sector reform program will support the overhaul of existing tariffs and subsidies as the Pakistan government moves to eliminate subsidies by 2016, except for low income customers.
Image: ADB’s $400m loan will help tackle Pakistan’s chronic energy crisis. Photo: courtesy of Asian Development Bank.