The Asian Development Bank (ADB) has decided to provide a loan of an amount $700 million to Pakistan. The Executive Board of ADB has approved this loan for four projects for Pakistan in the sectors: Clean energy, disaster management, waterway extension and public-private partnership, Werner Liepach, ADB country’s director, told the reporters, on Nov. 13th.
Investment in Clean energy
The ADB will invest $325m in clean energy sector, with particular focus on providing cheap, clean, sustainable and more reliable electricity services to needful communities in KP and Punjab.
An additional investment of $78.60m will be made by Agence Française de Développement, a French development agency. The clean energy plan will be executed over next five to ten years. It will support provincial governments to achieve increased access to cheap, sustainable and more reliable energy services for needful communities.
The government is taking many steps to ensure energy security and sustainable development in the country. Pakistan has started harnessing substantial amount of renewable energy from natural resources available in the country.
According to the figures provided by the Ministry of Water and Power, currently there are 35 wind power projects having a combined production capacity of 1,752 megawatts, which are at developing stage, and 12 power projects of a combined capacity of 590.5 megawatts are functional – adding electricity to the national grid.
$200m loan approved for Investment in Disaster Management Sector
The ADB on Thursday, Nov. 24, approved a $200 million loan to support Pakistan’s disaster management and to assist the National Disaster Risk Management Fund (NDRMF).
“Pakistan is constantly being exposed to various natural threats, global warming and climate change that pose a significant risk to the economic stability of the country,” said Werner Liepach, ADB Director for Pakistan.
“The inauguration of NDRMF will help lessen vulnerabilities to natural threats and improve the monetary management of disaster risks,” he added.
Pakistan is one of the most affected countries by harsh weather events since 1995. Mounting natural threats have resulted in significant loss of life, economic downfall, and dramatic pause to progress, according to the data provided by ‘Global Climate Risk Index’.
The ADB’s support will provide financial and technical support to National disaster risk management Fund (NDRMF) and is expected to contribute to the country’s economic growth by reducing losses inflicted by natural disasters and climate change.
Image: dpa Picture-Alliance
References: Dawn / Asian Development Bank
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