Pakistan signs $200mn loan agreement with ADB
- By Web Desk -
- Dec 31, 2024
The Economic Affairs Division of Pakistan has signed a loan agreement with the Asian Development Bank (ADB) for a financial assistance package of US$200 million.
According to a spokesperson for the Economic Affairs Division, the funds will be utilised for the energy sector, aimed at improving infrastructure and services.
The agreement will benefit several entities, including LESCO, MEPCO, and SEPCO, enhancing their capabilities in delivering energy services.
The signing ceremony was officiated by Secretary Dr. Kazim Niaz from the Ministry, while the ADB was represented by Deputy Country Director Asad Aleem.
Read more: Pakistan, ADB ink $330 million social protection agreement
This collaboration is expected to bolster Pakistan’s energy sector and contribute to economic growth.
Earlier, ADB approved a US$200 million loan aimed at upgrading and modernising Pakistan’s power distribution infrastructure and enhancing the reliability of electricity supply.
According to an ADB press release, the Power Distribution Strengthening Project will focus on upgrading distribution systems to meet the increasing electricity demand in the country.
Key objectives include reducing significant energy losses during transmission and improving the resilience of infrastructure against climate change and disaster-related risks. Initially, the project will benefit three major distribution companies: Lahore Electric Supply Company (LESCO), Multan Electric Power Company (MEPCO), and Sukkur Electric Power Company (SEPCO), promoting more efficient and sustainable energy delivery in these areas.