France to provide credit facility for energy sector reforms

ISLAMABAD: Pakistan and France signed 100 million Euros credit facility agreement for the Sustainable Energy Sector Reform Program on Wednesday.

Mr. Tariq Mahmood Pasha, Secretary Economic Affairs Division (EAD), Mr. René Consolo Chargé d’Affaire at Embassy of France, and Mr. Jacky Amprou, Country Director of the French Agency for Development (AFD) signed the agreement.

Finance Minister Ishaq Dar congratulated EAD and AFD on the signing of the agreement and underscored the importance of reforms in the energy sector which will directly impact the economic growth of Pakistan.

He expressed appreciation for AFD’s continuous support for development projects in Pakistan, and said that economic cooperation between Pakistan and France would be further strengthened after signing of the agreement.

Last week the Asian Development Bank has and agreement to provide a $300 million loan for the program.

The main objective is to revamp the energy sector to make it more affordable, reliable and sustainable to support economic growth, and reduce the energy crisis through the implementation of the National Power Policy 2013.

The reform program will help to improve the financial viability of the power sector by better managing tariff and subsidies, improving sector performance and opening up the market to private participation.

The program will also facilitate in improving the transparency as well as accountability of power sector institutions.