ADB plans to pour $2b in Pakistan’s energy sector

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The Asian Development Bank (ADB) has planned to invest $2 billion in the energy sector of Pakistan over a period of three years, said a delegation of the bank.
“The ADB remains top energy-sector partner with $2.1 billion worth of portfolio and $300 million released this week for reforms including addressing the circular debt,” said a high-level ADB team, headed by Director General for Central and West Asia Department Werner Liepach.

They met with Federal Minister for Power Omar Ayub Khan and Special Assistant to the Prime Minister on Petroleum Nadeem Babar on Wednesday. ADB Country Director in Pakistan Xiaohong Yang was also present.

The meeting discussed the ADB-funded projects in the energy sector and decided that a comprehensive portfolio review meeting would be held by the end of December 2019 between the Power Division and the ADB in a bid to steer the projects to their logical conclusion.

They also agreed that both the sides would put in efforts to ensure maximum transparency in the execution of projects.

The ADB team expressed interest in facilitating technical studies for setting up a gas storage facility in Pakistan. “Later, the ADB can also consider financing the project,” said Liepach.

The bank team was apprised of the approval of the new renewable energy policy, which would be placed before the Council of Common Interests (CCI) in a meeting to be held by the end of current month. The delegation was briefed about the steps taken by the Power Division to boost efficiency of the system and about the campaign against power theft.

It was highlighted that the Power Division was vigorously pursuing and implementing the circular debt capping plan, which resulted in a considerable reduction in growth of the debt from Rs39 billion a month to Rs12 billion a month

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