Asian Development Bank (ADB) will help Pakistan with a multi-tranche financing facility to cope with growing demand of energy and will provide a $810-million to Pakistan. ADB’s funding will support the Government of Pakistan ongoing power sector reform program that is designed to provide reliable and unhindered supply of power to people and to meet an estimated annual 8% rise in GDP growth from 2005-2015, and to expand power coverage in rural areas.
Mr. Rune Stroem, a Principal Energy Specialist of ADB’s Central and West Asia Regional Department said, “A secure and predictable electricity supply will lead to social and economic benefits and improve conditions for schools, hospitals and other social services,”.
The electricity and power shortage is a chronic problem that has slowed Pakistan’s social and economic growth rate. The problem is not a new one and dates back to the early nineties when the power supply was exceeded by the demand for electricity by thousands of MW. The gap between the demand and supply resulted in routine load shedding, overloaded infrastructure, power losses, capacity shortfalls. At this point Government of Pakistan intervened through the adoption of policy measures that aimed at mobilization for the investment in the power and electricity sector.
The daily lives and businesses of people have been disrupted due to energy crisis in Pakistan and story does not end here their miseries are being added by the increasing prices of electricity. It has impeded the growth of both small scale and large scale businesses. Industrial progress is in shambles owing to the unpredictable and the unreliable power supply.
The assistance from ADB aims to help the distribution companies provide an additional 12,000 gigawatt-hours (GWh) of electricity towards meeting expected demand and to give an additional 30 million people access to power from the national grid. It is believed that improved financial management and corporate governance standards in distribution companies attract more private firms to invest in the sector ultimately making lives of poor Pakistanis better.
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