ADB approves $810m for Pakistan’s energy sector overhaul

“A reliable and sustainable power sector is critical to the economic growth and wellbeing of Pakistan,” said Megan Wolf, Energy Specialist with ADB’s Central and West Asia Department. “Fast implementation of this facility and related reforms to alleviate power shortages will improve the prospects for the economy.”

The loan facility will help fund the staged rehabilitation and expansion of the transmission network, increasing transmission capacity and energy efficiency and security. It will also support government efforts to develop a more transparent and efficient power sector by promoting reforms in the National Transmission and Despatch Company Limited, and the sector’s newly established commercial operator, the Central Power Purchasing Agency (Guarantee) Limited. ADB’s facility will be delivered in tranches, implemented from 2016 to 2026.

Power shortages are a major obstacle in Pakistan’s economic development. With demand for electricity outpacing supply, inefficient and inadequate transmission and distribution systems are key bottlenecks in the development of the energy sector that is stifling growth and threatens social strife.