The government of Japan would provide a concession loan of approximately Rs 5 billion to Pakistan for supporting the energy sector reforms.
An agreement to this effect was signed between Ambassador of Japan to Pakistan, Hiroshi Inomata and Additional Secretary, Economic Affairs Division, Yasmin Masood, said a statement received on Wednesday.
Addressing the signing ceremony, the ambassador said that Japan recognises that addressing power crisis is a matter of critical urgency in Pakistan.
“We are pleased to work with the Government of Pakistan to tackle this problem in cooperation with other development partners”, he added.
This loan is provided as a part of a joint programme to support the energy sector reforms which is co-financed by the Asian Development Bank (ADB) and the World Bank (WB).
The ADB, the WB and Japan have worked with the Government of Pakistan to develop a reform programme and set agreed policy targets to manage tariff and subsidy, improve sector performance and open the market to private participation, and improve accountability and transparency in the energy sector.