In a fresh boost for Pakistan’s struggling energy sector, the Asian Development Bank (ADB) has approved $130 million in financing to support reforms, renewable energy, and grid modernization.
The declaration arrived during a meeting in Islamabad on Thursday between Federal Minister for Power Sardar Awais Ahmad Khan Leghari and an ADB delegation led by Joonho Hwang, Director Energy.
The discussion focused on some of the most pressing challenges in Pakistan’s power sector—ranging from the privatisation of electricity distribution companies (DISCOs) to the promotion of clean energy and the Public-Private Partnership (PPP) model.
Privatisation on the Horizon
Minister Leghari unveiled that the government has decided to move forward with the privatisation of three DISCOs in the first phase.
He welcomed both investment and technical assistance, noting that international expertise could play a major role in addressing distribution inefficiencies and minimizing losses that have long plagued the sector.
Shift Toward Green Energy
Highlighting the government’s environmental commitments, the minister said Pakistan has already shut down about 2,800 MW of fossil fuel power plants ahead of schedule. The country is now seeking green financing and carbon credits to accelerate its shift toward renewables.
He also indicated the recent introduction of a new tariff for electric vehicles (EVs), part of the broader push toward sustainable energy solutions.
ADB’s Continued Partnership
Joonho Hwang commended Pakistan’s efforts to pursue a cleaner and more efficient energy sector. He confirmed that of the $130 million package, $30 million will be made immediately available.
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He also assured that ADB would support Pakistan in privatisation, establishing a carbon market, and upgrading transmission and distribution systems.
Strong dedication to Benefit the public
Minister Leghari has emphasized that transparency, sustainability, and modern technology are considered to be the major parts of consideration of government energy policies. He emphasized that the ultimate goal is to ensure affordable, reliable, and sustainable electricity for the people.
International cooperation, he noted, is highly vital to achieve this goal and to place Pakistan on a more stable energy footing.