A project funded by the UK has committed to invest more than £15 million in renewable energy generation and energy efficiency projects in Pakistan.

Karandaaz will support small and medium sized businesses in the country by financing their projects as part of Britain’s Department for International Development’s (DFID) Sustainable Energy and Economic Development (SEED) programme.

The SEED programme will work with companies and financial institutions to demonstrate the financial viability of enhancing investments in clean energy and energy saving improvements.

Less than 4% of the electricity is currently generated by renewable sources in Pakistan.

According to a latest World Bank study, more than 75% of Pakistani firms cite energy provision as a major constraint to growth and daily load shedding and large leakages in the distribution system mean manufacturing firms say access to electricity is among the top obstacles to growth.

Dr Shamshad Akhtar, Chairperson of Karandaaz said: “It has been estimated by the IFC that as much as 11% – 14% of the energy utilised in Pakistan could be saved through energy conservation and efficiency measures, which is equivalent to two hours of power supply each day.

“This grant from DFID will help bridge the financing gap and enable the emergence of sustainable and efficient energy for Pakistan’s private sector, resulting in more vibrant and economically friendly cities, more competitive businesses and more jobs all leading to Pakistan moving closer to its targets as set under SDGs [Sustainable Development Goals].”