ISLAMABAD: The Asian Development Bank (ADB) has approved $250 million loan for Pakistan that will help the South Asian country deliver reliable electricity by expanding and improving its power transmission network in the Punjab and Khyber Pakhtunkhwa provinces, the Bank said on Friday.
Pakistan has enough installed capacity to meet its demand for electricity, but the South Asian country lacks adequate resources and cannot afford to invest in new infrastructure and power lines, which often result in transmission losses.
In January this year, the country suffered a nationwide blackout due to a frequency failure in the national grid, which happened because of a major mismatch between demand and supply. It was the second nationwide shutdown in three months.
The ADB said the $250 million loan was part of its Power Transmission Strengthening Project to increase transmission capacity of Pakistan’s national grid by expanding high-voltage transmission network to close 500 kilovolt (kV) and 220 kV transmission line loops, and reduce transmission losses by replacing old transmission lines.
“Reliable power supply is essential to inclusive, sustainable economic growth, and it will also provide economic opportunities to rural communities,” said Yevgeniy Zhukov, ADB director-general for Central and West Asia.
“We are pleased to continue supporting Pakistan in its efforts to achieve energy security while improving energy efficiency.”
The project will complement ADB’s ongoing support to Pakistan’s National Transmission & Despatch Company Limited (NTDC) aimed at ensuring energy security, climate resilience, and increased transmission capacity to deploy sufficient, reliable, clean, and cost-effective energy, according to ADB.
Aside from strengthening power transmission, it will also enhance the project and financial management of NTDC as well as its capacity to incorporate climate resilience in planning and operations.
“To promote gender equality and women’s involvement in the energy sector, ADB will develop guidelines for mentorships, conduct awareness campaigns, establish childcare centers, and provide technical training to female staff in the NTDC,” ADB Senior Energy Specialist Takhmina Mukhamedova said.
“This project also includes livelihood skills development for women in the project areas to improve their economic opportunities, and training for local communities to enable them to respond to climate-induced natural hazards.”
Pakistan was a founding member of ADB. Since 1966, the bank has committed over $52 billion in public and private sector loans, grants, and other forms of financing to promote inclusive economic growth in Pakistan and improve the country’s infrastructure, energy and food security, transport networks, and social services.
ADB said it was committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty. The bank, which was established in 1966, is owned by 68 members — 49 from the region.
ADB approves $250 million loan to help Pakistan improve power transmission
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ADB approves $250 million loan to help Pakistan improve power transmission
- Pakistan has faced transmission losses due to its inability to invest in new infrastructure and power lines
- The ADB loan will help the South Asian country reduce these losses by replacing old transmission lines
Pakistan raises fuel prices by Rs55 per liter as Middle East conflict drives oil surge
- Government says adequate fuel stocks in place despite global energy shock
- Oil prices jump from about $78 to over $106 per barrel amid regional conflict
ISLAMABAD: Pakistan on Friday increased petrol and diesel prices by Rs55 ($0.20) per liter each as escalating conflict in the Middle East sent global oil prices sharply higher and disrupted energy supply routes, officials said.
Global oil markets have been rattled since coordinated strikes by the United States and Israel against Iran began last week, triggering retaliatory attacks across the region, raising fears of disruption to key energy shipping routes and pushing petroleum prices sharply upward.
The price adjustment in Pakistan was announced after a joint press conference by Finance Minister Muhammad Aurangzeb, Deputy Prime Minister and Foreign Minister Ishaq Dar and Petroleum Minister Ali Pervaiz Malik, who said the government was monitoring international energy markets and domestic supply conditions amid the crisis.
“So, the decision we have made by changing the levy a little bit is that we are going ahead with increasing the price of both fuels, petrol and diesel, by Rs55 ($0.20),” Malik told reporters.
“And as soon as this matter settles, we will revise the prices downward with the same speed and take steps on how to increase people’s income and purchasing power.”
He said Pakistan entered the crisis with “comfortable energy reserves” due to earlier planning but rising global prices had forced the government to adjust domestic fuel rates to maintain supply continuity.
He said international petrol prices had climbed from roughly $78 per barrel on March 1 to around $106.8 per barrel, while diesel prices had risen to about $150 per barrel.
Malik added that the government had taken steps to minimize the burden on consumers, noting diesel plays a critical role in agriculture, transportation and public mobility.
Malik also warned that authorities would take strict action against anyone attempting to hoard fuel or manipulate supply for profiteering.
The minister said Pakistan was working with international partners to secure additional energy supplies, including arrangements with Saudi Aramco and the use of Pakistan National Shipping Corporation vessels to transport crude oil imports.
Finance Minister Aurangzeb said a high-level government committee formed by Prime Minister Shehbaz Sharif had been meeting daily to review developments in global petroleum markets and their potential impact on Pakistan’s economy.
“Pakistan currently maintains adequate energy stocks and macroeconomic stability,” Aurangzeb said, adding that the government’s response was based on preparedness rather than panic.
He said the committee, which includes senior ministers, the governor of the State Bank of Pakistan and other officials, was assessing short-, medium- and long-term implications of the crisis for inflation, foreign exchange reserves and broader economic indicators.
Deputy PM Dar said the regional conflict had significantly disrupted global energy markets, with international petroleum prices rising by as much as 50–70 percent in recent days.
The deputy prime minister added that Pakistan was also engaged in diplomatic efforts aimed at de-escalating tensions and restoring stability in the region.
Petroleum prices will now be reviewed more frequently, potentially on a weekly basis, and any reduction in global oil prices would be passed on to consumers.
Pakistan, which relies heavily on imported fuel to meet its energy needs, is particularly vulnerable to global oil price shocks that can quickly feed into inflation and pressure the country’s external accounts.
