As present in the ADB’s energy sector reforms, financing constitutes to be the vital part of the second subprogram including the financial sustainability program. According to these reforms, the Asian developmental bank has approved 685 million dollars in total for the improvement of financial stability and community health and livability of Pakistan. A total of 300 million dollars loan was approved by the bank to support financial, technical and governance reforms of the energy sector of Pakistan. The first subprogram from the bank was approved in 2019.
The director general for central and west Asia Yevgeniy Zhukov , giving an explanation, stated “As Pakistan’s significant development partner in the energy sector, the ADB has been cooperating with the government to expand access to reliable, economic electricity and help enact reforms that make the sector more efficient and sustainable. 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.”
The spread of corona virus has been a major hurdle in the development of Pakistan’s energy sector regarding the supply chains and finances, which ultimately slowed down the sector reforms initiated by the government 2019. The ADB’s program will assist the pace of these reforms as well as prove to be a support in the financial and developmental categories in the energy sector of Pakistan by addressing inefficient tariffs and subsidies, high generation costs, system losses and a lack of integrated planning, while enhancing the infrastructure and professionalizing the management of energy entities for their efficient performance.
ADB also approved another 385 million dollars budget for the development and improvement in stabilization of the community health in KPK province. A couple of clean water supply treatment facilities, three sewage treatment facilities, and rehabilitation of dysfunctional tube wells are a part of the initiatives in this program. This will benefit approximately 3.5 million people as the KPK province continues to be one of the most densely populated areas of Pakistan.
The Asian Infrastructure Investment Bank will also provide co-financing of $200 million, subject to approval of their board of directors. Together with $65 million in financing from the Government of Pakistan, this represents the ADB’s largest urban project in Pakistan. The project will also keep a keen eye to be an assistance in the boosting of women’s access to financial opportunities and increasing the participation of women in the urban governance by upgrading a center with the basic purpose of women skill development. The project will also rehabilitate streets, parks and trails and add female friendly facilities like sports complexes and family areas. A scholarship program for female students will also be supported.
