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.


Pakistan forces retake Balochistan town using drones, helicopters as violence toll rises

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Pakistan forces retake Balochistan town using drones, helicopters as violence toll rises

  • Security forces say 197 BLA militants killed after coordinated attacks across the province
  • Police say additional troops were sent to the remote town of Nushki amid rising violence

QUETTA: Pakistan’s security forces used drones and helicopters to wrest control of a southwestern town from separatist insurgents after a three-day ​battle, police said on Wednesday, as the death toll in the weekend’s violence rose to 58.

Saturday’s wave of coordinated attacks by the separatist Baloch Liberation Army brought Pakistan’s largest province to a near standstill as security forces exchanged fire with insurgents in more than a dozen places, killing 197 militants.

“I thought the roof and walls of my house were going to blow up,” said Robina Ali, a housewife living near the main administrative building in the fortified provincial capital of Quetta, where a powerful morning blast rocked the area.

Fighters of the BLA, the region’s strongest insurgent group, stormed schools, banks, markets and ‌security installations across Balochistan ‌in one of their largest operations ever, killing more than 22 ‌security ⁠officials ​and 36 ‌civilians.

Police officials gave details of the situation on condition of anonymity as they were not authorized to speak to the media.

In the desert town of Nushki, home to about 50,000, the insurgents seized control of the police station and other security installations, triggering a three-day standoff.

Police said seven officers were killed in the fighting before they regained control of the town late on Monday, while operations against the BLA continue elsewhere in the province.

“More troops were sent to Nushki,” said one security official. “Helicopters and drones were used against the militants.”

Pakistan’s ⁠interior ministry did not immediately respond to a Reuters request for comment.

LATE NIGHT ATTACKS

Pakistan’s largest and poorest province, mineral-rich Balochistan borders Iran and ‌Afghanistan and is home to Beijing’s investment in the Gwadar deep-water ‍port and other projects.

It has grappled with a ‍decades-long insurgency led by ethnic Baloch separatists seeking greater autonomy and a larger share of its natural ‍resources.

The BLA, which has urged people of the province to support the movement, said on Tuesday it had killed 280 soldiers during its Operation “Herof,” Black Storm, but gave no evidence.

Security officials said the weekend attacks began at 4 a.m. on Saturday with suicide blasts in Nushki and the fishing port of Pasni and gun and grenade ​attacks in 11 more places, including Quetta.

The insurgents seized at least six district administration offices during the siege and had advanced at one point to within 1 km (3,300 ft) ⁠of the provincial chief minister’s office in Quetta, the police officials said.

EVOLVING INSURGENCY

Pakistan has blamed India for the attacks, without furnishing evidence for charges that could escalate hostilities between the nuclear-powered neighbors who fought their worst armed conflict in decades in May.

India’s foreign ministry has rejected the charges, saying Islamabad should instead tackle the “long-standing demands of its people in the region.”

Retired Lt. General Amir Riaz, who led the military in Balochistan from 2015 to 2017, said the insurgency had evolved over the last decade.

He added that it gained strength as the BLA received Indian support and used Afghanistan as a staging ground for its attacks, a charge the Taliban government has denied.

Riaz said the conflict would oscillate between stalemate and periods of heightened violence.

“It has escalated. The response will be decisive, leading to serious capacity degradation of BLA,” he said, denying that the Pakistani military ‌has used excessive force in Balochistan.

“However, ultimately the issues are only resolved through political process and governance.”