Government asks ADB for power debt support

Leghari seeks financing for reforms as Cheema presses for continued backing of ML-1 project

ISLAMABAD:

Federal Minister for Power Division Sardar Awais Ahmed Khan Leghari has sought the Asian Development Bank's (ADB) support in addressing power sector debt repayment challenges and in building confidence among private investors. According to an official statement issued on Wednesday, Leghari met with a delegation of the ADB led by Leah Gutierrez, Director General, Central and West Asia Department.

Leghari briefed the delegation on key challenges facing the power sector. He highlighted constraints in financing, issues related to rupee cover and high upfront costs. He added that the government is engaging local investors through the Pakistan Business Council to attract private investment in the power transmission sector and improve market visibility.

Sharing ongoing reforms, the minister highlighted progress on IGCEP-aligned transmission projects. He stated that excess power capacity, which was not required in the future, has been removed. He reiterated that the government will not procure additional power and is moving towards a competitive electricity market.

Leghari noted that Pakistan has transitioned around 20 GW to clean energy. However, despite this shift, no dedicated financing was provided for the transition or for ensuring grid stability.

He requested ADB's support in addressing debt repayment challenges and in restoring confidence among private investors.

Later, Gutierrez also called on Federal Minister for Economic Affairs Ahad Khan Cheema and reaffirmed ADB's support for the ML-1 railway project.

WITH ADDITIONAL INPUT FROM APP