ISLAMABAD: The Asian Development Bank (ADB) has approved $400 million loan for Pakistan to assist the energy sector reforms, ARY News reported.
ADB stated that the economic growth of Pakistan has been decreasing by 2 per cent annually. Private investment has been sharply reduced and power sector subsidies have caused high fiscal deficits and elevated public debt. The government is implementing the National Power Policy which was approved in July 2013 to resolve these problems.
To counter the energy crisis ADB, Japan and World Bank have designed a plan with the government of Pakistan for reforms in the country's energy sector.
The plan will cost estimated $1.20 billion allowing the government to abolish subsidies by 2016.
Japan will provide loan of $490 million to Pakistan while ADB will give $600 million for the plan expected to complete by June 2018.