Pakistan receives $400mn from ADB

ISLAMABAD: Pakistan on Saturday received US $ 400 million from the Asian Development Bank (ADB) on account of support to the government’s ongoing reforms to tackle the country’s chronic energy crisis.

In recognition of government’s commitment to carry out reforms, particularly those in the energy sector, the ADB on April 24, 2014 had approved the loan worth of $400 million for Pakistan and an agreement to this effect was signed on April 28th at the Finance Ministry.

Finance Minister Senator Ishaq Dar had already indicated that coal power projects will be set up in different parts of the country with the help the soft loan which is virtually a free loan and reflected the trust of the international community in the government’s efforts to improve the economy.

According to a statement issued by the Finance Ministry here, the loan is part of an assistance programme which will underwrite reforms needed to make the energy sector affordable, reliable, sustainable and secure.

It will accelerate industrial activity needed to boost economic growth and help create jobs, which are keys to reducing poverty levels.

ADB is the lead development organization in Pakistan’s energy sector supporting energy efficiency, transmission, distribution, cross-border natural gas pipelines, power generation, and renewable energy projects.

The full programme is expected to total $1.2 billion, with future commitments, the statement added.