ADB expresses interest in funding upgrades for Pakistan's power distribution system

The bank says it is ready to help arrange finances for Pakistan Disaster Management Fund

ISLAMABAD: Asian Development Bank (ADB) on Saturday expressed its willingness to finance the upgradation and strengthening of power transmission and distribution system in the country.

During a meeting with Finance Minister Ishaq Dar, ADB Country Director Werner Liepach expressed his institution’s willingness to finance power projects in Pakistan next year.

While welcoming the ADB’s expression of interest in financing projects aimed at tackling the energy crisis in the country, Dar apprised Liepach on progress achieved by the Energy DPC-II project, adding that most of the prior actions in this regard have been completed by Pakistan.

ADB to help set up Pakistan Disaster Management Fund

Both sides agreed that in view of recurring natural calamities like floods, it was essential to have an arrangement to deal with emergent situations such as a Pakistan Disaster Management Fund (PDMF).  They also agreed to explore possibility of having a standby credit line to deal with such calamities.

Deliberating on the establishment of PDMF, which would be steered by ADB, Liepach said that the bank would help arrange finances for the fund from donors and development partners.

Read: IMF grants Pakistan two waivers on budget deficit

On this occasion, Dar informed the ADB country director about the recent conclusion of the eighth review by the International Monetary Fund (IMF) in Dubai.

IMF had on Friday agreed to waive requirements of lowering the budget deficit and borrowings from the central bank on Pakistan, two lynchpin conditions of the $6.2 billion loan programme. The move paves the way for the lender’s executive board to approve the next $502 million tranche of the bailout.