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Pakistan : GOVERNMENT OF PAKISTAN gives $400 million loan for tackling CHRONIC ENERGY CRISIS

April 29, 2014

A $400 million (£237.8m) given by the Government of Pakistan through Asian Development Bank for undertaking the country s chronic energy crisis .

As result of power shortages, its economy has been destroyed that are estimated to have slowed the GDP growth by at least 2% a year.

The Government of Pakistan is in the procedure of executing the National Power Policy in a bid to help settle the problems.

The reform programme of ADB would back up the overhaul of existing tariffs and subsidies as the government plans on cutting the latter by 2016, except for low income consumers. It will also back reforms to cut down power losses and promote more private sector involvement and improving transparency in the sector.

As per ADB Director General for the East Asia Department, Klaus Gerhaeusser, The loan is part of an assistance program which will underwrite reforms needed to make the energy sector affordable, reliable, sustainable and secure. This in turn will accelerate industrial activity needed to boost economic growth and help create jobs, which are the key to reducing poverty levels.

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Source: TendersInfo (India)

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