$1.4bn investment to help Pakistan’s power crisis

Pakistan will receive an investment worth $1.4 billion (£0.92bn) to resolve its power crisis. The cash from the Asian Development Bank (ADB) will help the country resolve some of the […]

Register now!

By Jacqueline Echevarria

Pakistan will receive an investment worth $1.4 billion (£0.92bn) to resolve its power crisis.

The cash from the Asian Development Bank (ADB) will help the country resolve some of the issues in the energy sector, which puts pressure on the nation’s GDP growth.

The electricity supply-demand gap of 5,000MW is blamed for a sharp decline in manufacturing, stated the ADB.

Around $990 million (£653m) will be used to install a metering infrastructure system for distribution companies across the country.

It will help reduce losses, improve revenue collection and load management and strengthen the financial viability of the sector.

The rest of the loan worth $400 million (£264m) will be used to support ongoing policy reforms, which aim to build an affordable and secure energy sector.

Adnan Tareen, Senior Energy Specialist said: “Nearly 20% of generated electricity is lost due to high technical and commercial losses and measures like the installation of the AMI [Advanced Electricity Metering Infrastructure] system are necessary to counter this. The two programmes, collectively, will help create a more efficient, transparent, modern and sustainable energy sector.”