ISLAMABAD
Pakistan and the French Development Agency (AFD) on Thursday signed two loan agreements for the financing of energy projects: Power Transmission Enhancement Investment Tranche-IV and Mangla Power Plant Rehabilitation Project, amounting to €165 million.
Economic Affairs Division (EAD) Secretary, Shahid Mahmood, Ambassador of France, Martine Dorance, and Country Director of the French Agency for Development (AFD), Jacky Amprou, signed the agreements.
Finance Minister Ishaq Dar also witnessed the signing of the two loan agreements between Pakistan and France.
The finance minister appreciated AFD’s continued support and assistance for economic development of Pakistan. He welcomed AFD‘s new strategy to develop and open new sectors of cooperation in the water and sanitation in Faisalabad, ‘Clean Energy’ project in Kyber Pakhtunkhwa and Punjab and urban transport system in Khyber Pakhtunkhwa .
Ambassador of France Martine Dorance said that France and Pakistan enjoyed long history of cooperation and that government of France was pleased to support the government of Pakistan in different areas.
The main objective of the program is to make energy sector more affordable, reliable and sustainable, supporting economic growth through expeditious implementation of the National Power Policy, 2013.
Under these programs, the government has embarked on a substantial reform initiative that aims to address financial sustainability issues in the energy sector. This includes recently passed legislation that will improve governance through more clearly defined roles for both the government and the energy sector regulator, reducing debt levels in the energy sector, and increasing investment.
The energy reform program demonstrates government’s commitment to improve the reliability, sustainability, and affordability of the energy sector. Maintaining the momentum for reform will help ensure that all Pakistanis have access to electricity, while keeping the economy on a high-growth path.
