$300 Million ADB Loan to Strengthen Pakistan’s Energy Sector
The Asian Development Bank (ADB) today approved a $300 million policy-based loan to support financial, technical, and governance reforms to strengthen Pakistan’s energy sector and improve its financial sustainability.

The financing is part of the second subprogram of ADB’s Energy Sector Reforms and Financial Sustainability Program, which aims to improve the governance of Pakistan’s energy sector and reduce and manage the accumulated cash shortfall across the power supply chain known as circular debt. The first subprogram in the amount of $300 million was approved in December 2019.

“As Pakistan’s key development partner in the energy sector, ADB has been supporting the government to expand access to reliable, affordable electricity and help enact reforms that make the sector more efficient and sustainable,” said ADB Director General for Central and West Asia Yevgeniy Zhukov. “This program will help facilitate public and private sector investment across the energy sector value chain through key policies and integrated planning, and will help expand renewable energy generation.”