��������

ISLAMABAD: Pakistan’s Ministry of Energy announced on Thursday that the Asian Development Bank (ADB) has approved a $130 million loan for the country’s energy sector, and vowed to support Islamabad’s bid to promote clean energy and improve its power transmission and distribution system.

Pakistan’s power sector is riddled with challenges which include frequent and lengthy power outages, high transmission losses, dependence on expensive imported fuels, limited renewable energy sources and most of all, a massive circular debt. The circular debt is a cascade of unpaid government subsidies that results in accumulation of debt on distribution companies.

Pakistan has sought help from international partners, including the ADB, to improve its energy infrastructure by modernizing its transmission system and promoting renewable energy projects. Sardar Awais Ahmad Khan Leghari, Pakistan’s power minister, met an ADB delegation led by Joonho Hwang, the director of energy at the bank, to discuss Islamabad’s reforms and future areas of cooperation.

“Joonho Hwang expressed pride in ADB’s partnership with Pakistan’s energy sector,” the energy ministry said in a statement. “He informed that $130 million has been approved for Pakistan’s energy sector, out of which an initial $30 million is immediately available.”

The ADB official said the bank values Pakistan’s efforts to promote green financing and that a World Bank team would review projects from the initial stages to ensure maximum benefit for Pakistan.

“He further assured that ADB will extend full support in privatization, establishing a carbon market, modernizing transmission and distribution systems and advancing renewable energy projects in Pakistan,” the statement said.

Leghari informed the ADB delegation that during the first phase of its move to privatize power distribution companies (DISCOS), Islamabad would privatize three DISCOs, adding that it would welcome the ADB’s investment and technical assistance.

Privatization of loss-making state-owned enterprises has long been on the International Monetary Fund’s (IMF) list of recommendations for Pakistan, which is struggling with a high fiscal shortfall and a huge external financing gap.

Pakistan and the IMF reached a deal for a $7 billion bailout last year, which has been crucial in the country’s efforts to revive its economy.

Leghari told the ADB delegation that the government is prioritizing clean energy and seeks international cooperation to improve grid and metering systems.

“He also highlighted that Pakistan has shut down around 2,800 MW of fossil fuel power plants ahead of schedule as part of its environmental responsibility and now seeks access to green financing and carbon credits,” the energy ministry said.

ISLAMABAD: Prime Minister Shehbaz Sharif said on Thursday Pakistan planned to float Panda Bonds in China’s capital market as he met Premier Li Qiang in Beijing, where the two leaders discussed stronger economic cooperation including the next phase of the multibillion-dollar China–Pakistan Economic Corridor (CPEC).

Panda Bonds are yuan-denominated bonds issued in China by foreign governments or entities. Islamabad plans to issue them to raise financing from Chinese investors and ease pressure on its foreign exchange reserves.

At the same time, Pakistan is pushing for an upgraded phase of CPEC, a flagship project of President Xi Jinping’s Belt and Road Initiative (BRI), which has already poured billions of dollars into Pakistani infrastructure and energy. “CPEC 2.0” is meant to expand beyond roads and power plants into new areas focused on industry, agriculture, digital technology and livelihoods.

Sharif met with the Chinese premier during which he discussed Pakistan’s economic reforms, saying they were yielding promising results while acknowledging China’s support through his country’s prolonged financial hardships.

“While paying rich tribute to China’s impressive transformation under President Xi Jinping’s visionary leadership, the Prime Minister stated that Pakistan wanted to emulate China’s successes and build a stronger and closer Pakistan-China community with a shared future,” said a statement released by Sharif’s office in Islamabad after the meeting.

“He also shared Pakistan’s intent to float Panda Bonds in the Chinese capital market soon,” it added.The statement said both sides agreed to expedite work on the next CPEC phase, including early implementation of the long-delayed Main Line-1 railway upgrade, Karakoram Highway realignment and full operationalization of Gwadar Port.

They also attended a ceremony for signing agreements covering cooperation in CPEC 2.0, science and technology, agriculture, media and information technology.

Sharif highlighted the outcome of a Business-to-Business (B2B) Investment Conference held earlier in the day, attended by more than 300 Pakistani and 500 Chinese companies.

He identified agriculture, mines and minerals, textiles, industry and information technology as priority sectors for new collaboration.

He also thanked Beijing for its “unflinching support” to Pakistan’s territorial integrity, sovereignty and socio-economic development.

The acknowledgment comes months after Pakistan leaned heavily on Chinese military hardware during a brief four-day standoff with India.

Indian officials said Pakistan was fully backed by China in the war, though authorities in Islamabad later insisted their “victory” in that clash was “made in Pakistan.”

Sharif began his China visit over the weekend, attending a summit of the Shanghai Cooperation Organization (SCO) and meeting President Xi. He also watched a massive Victory Day military parade in Tiananmen Square — China’s largest in years — to mark the 80th anniversary of the end of World War II. The display showcased hypersonic missiles, sea drones and laser air defenses in a show of strength that drew world leaders including Russia’s Vladimir Putin.