France provides €100m credit facility

It will help ease energy crisis, improve power production

ISLAMABAD: Pakistan and France have signed a €100 million credit facility agreement for the Sustainable Energy Sector Reform programme to mitigate electricity outages and meet the rising power demand.

The agreement, equal to Rs11.5 billion, was signed by Economic Affairs Division Secretary Tariq Mahmood Pasha, Embassy of France Charge d’Affaires Ren Consolo and French Agency for Development (AFD) Country Director Jacky Amprou.

The Asian Development Bank has already approved $300 million as a co-financier of the programme.

Power shortages are a major obstacle to Pakistan’s economy. With demand for electricity outpacing supply, inefficient and inadequate transmission and distribution systems stifle the national growth and spark street protests. Pakistan has embarked on a reform drive under this programme that is aimed at addressing the financial sustainability issues in the energy sector.

It comes after legislations that will improve governance through clearly defined roles for both the government and the autonomous energy sector regulator, reduce circular debt and increase investment in the energy sector.

The government seeks to achieve increased investment through improved market access for the private sector, increased energy efficiency and implementation of accountability and transparency measures.

For the last 10 years, France through the AFD has provided €610 million to support Pakistan in these endeavours and help end the energy crisis.

The programme is also aimed at fighting climate change through investments in energy generation that has low carbon emission in line with COP21 Paris agreement approved by Pakistan’s parliament.

Published in The Express Tribune, June 23^rd, 2017.

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