The Asian Development Bank (ADB) has approved a $400 million loan to support the government of Pakistan’s ongoing reforms to tackle the energy issues.
A statement issued by the ADB on Thursday said the loan was part of an assistance programme which would underwrite reforms needed to make the energy sector affordable, reliable, sustainable and secure. This in turn would accelerate industrial activity needed to boost economic growth and help create jobs, which were key to reducing poverty levels, the ADB said. Pakistan’s economy had been devastated by power shortages which were estimated to have slowed GDP growth by at least 2 percentage points a year, and private investment had been sharply reduced and power sector subsidies had caused high fiscal deficits and elevated public debt, it added.
