Pakistan says ADB has approved $130 million loan for improving its energy sector

Pakistan Power Minister Sardar Awais Ahmad Khan Leghari gestures during a meeting with the delegation from Asian Development Bank in Islamabad on September 4, 2025. (Handout/Power Ministry)
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Updated 04 September 2025
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Pakistan says ADB has approved $130 million loan for improving its energy sector

  • Pakistan’s power minister meets ADB delegation in Islamabad to discuss energy sector reforms, clean energy projects
  • ADB delegation assures support in privatization of DISCOS, modernizing transmission systems, says energy ministry

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.


Nearly 25% of Pakistan’s primary schools enrolling girls operate as single-teacher ones— report

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Nearly 25% of Pakistan’s primary schools enrolling girls operate as single-teacher ones— report

  • Pakistan needs over 115,000 more teachers in primary schools enrolling girls to meet global benchmark of one teacher per 30 students, says report
  • Sixty percent of Pakistani primary schools enrolling girls are overcrowded, while 32% lack clean drinking water or toilets, says Tabadlab report

ISLAMABAD: Nearly 25% of Pakistan’s primary schools that enrolls girls operate as single-teacher ones, a report by a leading think tank said this week, calling on the government to devolve teacher recruitment powers, upskill underutilized teachers and introduce reforms to hire and promote faculty members. 

Pakistan faces an acute education crisis which is reflected in the fact that it has the world’s second-highest number of out-of-school children, an estimated 22.8 million aged 5-16 who are not in educational institutions, according to UNICEF. 

While poverty remains the biggest factor keeping children out of classrooms, Pakistan’s education crisis is exacerbated by inadequate infrastructure and underqualified teachers, cultural barriers and the impacts of frequently occurring natural disasters. 

According to “The Missing Ustaani,” a report published by Islamabad-based think tank Tabadlab and supported by Malala Fund and the Pakistan Institute of Education (PIE), Pakistan needs over 115,000 more teachers in primary schools with girls’ enrolment to meet the basic international benchmark of ensuring one teacher per 30 children. Currently, the average Student-to-Teacher Ratio (STR) across Pakistan’s primary schools with girls’ enrolment is 39:1, it said. 

“Approximately 60% of these schools are overcrowded, necessitating the recruitment of over 115,000 additional teachers nationwide,” the report said on Monday. “Compounding this, nearly 25% of primary schools with girls’ enrolment operate as single-teacher schools, placing immense pressure on the quality of education.”

It said the situation is more dire in Pakistan’s poverty-stricken southwestern Balochistan province, where nearly 52% of the schools are single-teacher only ones while the percentage decreases slightly in the southern Sindh province to 51 percent. 

The report said while the STR improves to 25:1 at the middle school level, acute shortages of subject specialists emerge as the top-priority concern for quality education in these schools.

“Furthermore, around 32% of primary schools with girls’ enrolment and 18% of middle schools face ‘critical infrastructural shortages’— lacking clean drinking water or toilets in addition to high STRs— which significantly affects girls’ attendance and learning, particularly during adolescence,” the report said. 

The report cited a set of priority recommendations to address Pakistan’s systemic teacher deployment challenges and improve educational equity for girls. 

It urged the government to devolve recruitment authority to school or cluster levels to enable timely, context-specific hiring. It also called upon authorities to reform teacher transfer and promotion policies to introduce school-specific postings with minimum service terms. 

This, it said, would reduce arbitrary transfers and improving continuity in classrooms. The report advised authorities to upskill surplus or underutilized primary teachers to support instruction at the middle school level, helping address subject-specialist shortages.

“Together, these reforms offer a pathway toward a more equitable, efficient, and responsive teaching workforce— one capable of improving learning outcomes and ensuring that every girl in Pakistan has access to a qualified teacher,” the report said. 

To tackle Pakistan’s education crisis, Prime Minister Shehbaz Sharif declared an ‘education emeregency’ in September 2024, stressing the importance of education for all.