The Asian Development Bank (ADB) has pledged $130 million to support Pakistan’s energy sector, with $30 million already available for immediate use, as the government accelerates reforms and privatization efforts.
In a meeting with Federal Minister for Power, Sardar Awais Ahmad Khan Leghari, ADB’s Director Energy, Joonho Hwang, reaffirmed the Bank’s long-standing partnership with Pakistan. He assured that ADB will extend full support in the privatization of distribution companies (DISCOs), modernization of transmission and distribution systems, promotion of renewable energy projects, and the establishment of a carbon market.
Minister Leghari outlined that three DISCOs will be privatized in the first phase, where both investment and technical assistance are expected to play a crucial role. He emphasized the government’s priority on clean energy, noting that “Pakistan has shut down around 2,800 MW of fossil fuel power plants ahead of schedule as part of its environmental responsibility.” He added that the country is seeking international cooperation to improve grid and metering systems, alongside access to green financing and carbon credits.
The minister further highlighted ongoing initiatives, including the introduction of a new tariff for electric vehicles, and stressed that transparency, sustainability and modern technology remain at the heart of all government projects. “The ultimate goal of government policies is to provide affordable and sustainable electricity to the public, for which international partnerships are of critical importance,” he stated.
Hwang welcomed these measures, saying ADB values Pakistan’s efforts to promote green financing and confirmed that the World Bank team will review projects from the initial stage to ensure maximum benefit. He also expressed pride in ADB’s continued role in Pakistan’s energy sector and its support for integrated energy planning and the Public-Private Partnership (PPP) model.
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