The government of Japan expressed its intention to give a concessional loan of $52 million to the government of Pakistan for supporting energy sector reforms.
Hiroshi Inomata, Ambassador of Japan conveyed this message during his recent call on Senator Ishaq Dar, Minister of Finance, Economic Affairs, Revenue, Statistics and Privatisation of Pakistan. This loan is planned to be co-funded by World Bank and the Asian Development Bank. The government of Japan and the government of Pakistan will work together to prepare for inking a bilateral agreement on Japan s loan at an early stage.
Hiroshi Inomata said, Japan recognizes that the energy sector reforms are a matter of critical urgency in Pakistan. We are pleased to work with the government of Pakistan to tackle the power crisis in cooperation with other development partners.
The ADB, Japan and the World Bank worked with the government of Pakistan to develop a reform programme and set agreed policy targets to (i) manage subsidy and tariff, (ii) enhance sector performance and open the market to private participation, and (iii) enhance accountability and transparency in the energy sector.
Hart had in 2012 before tried to sell the CHH PPP businesses and was forced to refund $1.45 billion in debt when no buyer emerged at the time.