ADB approves $ 1.4bn for Pakistan energy sector
Asian Development Bank has approved a combined loan assistance of $1.4 billion for improving the power sector in Pakistan. A Power distribution enhancement program will receive $990 million to introduce a metering system for power companies that will help to improve revenue collection load management and that will also reduce loss across the country. The remaining amount of $400 million will spend on to build an affordable and sustainable energy sector to support ongoing policy reforms.
Nawaz Sharif who become the Prime Minister of Pakistan after winning the general election of 2013 and he raises the issue energy crises in his campaign. Almost 200 million citizen of Pakistan suffering with the energy crisis and government is struggling to provide enough power. Circular debt also made the dual effect and setting the low electricity prices by government and customer also failing to pay it due to bad infrastructure and the daily load shedding. The states utilities are also unable to pay their bill and supplier cutting them off.
Adnan Tareen a senior enrgy specialist says almost 20% of the total production electricity is loss due to high technicality measures and commercial losses and we should need to install AMI (advance electricity metering infrastructure) system to counter this. Pakistan will also receive $502 million of its loan from the International Monetary Fund (IMF) in December as a part of three year economic bailout package.
Asian Development Bank will also give a new assistance of $1.2 billion annual package for Pakistan to improve infrastructure and create jobs. These two programs will help us to develop a more efficient, modern, transparent and sustainable energy sector.