Islamabad receives $400m loan from ADB

May 05, 2014 - 4:14:44 am

ISLAMABAD: Pakistan received $400m from the Asian Development Bank (ADB) over the weekend on account of support to the government of Pakistan’s ongoing reforms to tackle the chronic energy crisis, official sources here say.

In recognition of the government’s commitment to carry out reforms, particularly those in the energy sector, which is important for the overall economic development, the Asian Development Bank had, on April 24, approved the loan worth $400m for Pakistan and an agreement to this effect was signed on April 28 at the Finance Ministry, it said.

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

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 key to reducing poverty levels, it said.

The ADB is the lead development organisation 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 $1.2bn.