ISLAMABAD
Pakistan and France on Wednesday signed Euro 100 million credit facility agreement for the Sustainable Energy Sector Reform Program.
Secretary, Economic Affairs Division (EAD) Tariq Mahmood Pasha, Chargé d’Affaire Embassy of France René Consolo, and Country Director of the French Agency for Development (AFD) Jacky Amprou signed the agreement.
The program will support the overhaul of existing tariffs and subsidies as the government moves to eliminate subsidies, except for low-income customers. It will also back reforms to reduce power losses, encourage involvement of the private sector in the power sector, and improve transparency and accountability.
The program will help revamp the energy sector to make it more affordable, reliable and sustainable, supporting the country’s economic growth, and alleviating the energy crisis through expeditious implementation of the National Power Policy, 2013. It will help in improving the financial viability of the power sector by better managing tariff and subsidies, improving sector performance and opening up the market to private participation.
The Finance Minister Ishaq Dar expressed appreciation for AFD’s continuous support for development projects in Pakistan, including in the energy sector. He said with the signing of the agreement, economic cooperation between Pakistan and France would be further strengthened.
