ADB to Grant $350m to Pakistan overcome energy deficits

The Asian Development Bank (ADB) has decided to shortly approve a loan worth USD 350 million for energy sector reforms.

  • The main purpose of this aid to address governance, fiscal, technical and policy deficits in the energy sector of Pakistan.
  • Asian Development Bank (ADB) is giving a grant of $350m to the energy sector of Pakistan to reduce deficits.
  • The loan will help to finance three subprograms from 2019 to 2023.


For the financial stability and energy sector reforms, the Asian development bank (ADB) will give $350m to the energy sector. Furthermore,this aid aims to address governance, fiscal, technical and policy deficits in Pakistan’s energy sector.

The impact of deficits on the sector’s quality and efficiency is very adverse. Hence,this shortfall is challenging the fiscal balance, finances and macroeconomic stability of Pakistan.

Collaboration with Pakistani ministries

The total cost on the energy sector reforms and financial sustainability program will cost $350m. Out of which ADB will provide $300m whereas the Export-Import Bank of Korea will give $50m for the program.

The project will execute with the collaboration between ministry of finance and Asian development bank. On the other hand, ministry of energy will be the implementing agency.

Project document

On Friday, ADB released a document, which says, negotiations between government and ADB will happen in the next month. Whereas, loan signing will take place in November of this year. For the evaluation of program ADB has already completes its fact-finding mission.

Curtail the burden of sector

The main purpose of the program is to underpin international monetary fund’s worth of $6 billion to curtail the burden of sector. Furthermore, to relief the annual burden and the negative impact which is associated with economic growth.


The energy sector reforms will be divided into three subprograms to support financial stability, strengthening governance, and reinforcing infrastructure improvements. Furthermore, this loan will help to finance three sub programs from 2019 to 2023.

See also: ADB, Pakistan Prepare 5-Year Country Partnership Strategy For 2020-24

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