ISLAMABAD, Pakistan: The government of Japan will provide US$ 43 million to Pakistan (Japanese Yen 5 billion approximately) for implementing the energy sector reforms programme.
The programme is part of ‘Energy Sector Development Programme, Development Credit (DPC-II) and it is also supported by World Bank and Asian Development Bank.
Notes to this effect were signed at Economic Affairs Division (EAD) here on Tuesday. Secretary EAD, Tariq Bajwa and Ambassador of Japan to Pakistan Hiroshi Inomata signed the agreement on behalf of their respective sides.
The concessional loan of US$ 43 million for energy sector reforms programme was the second of this kind after the provision of the loan of same amount provided by the government of Japan to Pakistan in June 20114.
This financial assistance was also part of energy sector reforms programme that was co-financed by the Asian Development Bank, World Bank and Government of Japan, worked with Pakistan to develop reform programme and set agreed policy targets in energy sector.
Speaking on the occasion, Ambassador of Japan lauded the government of Pakistan’s efforts towards the energy sector reforms to overcome energy shortage in the country.
He said that Japan was expecting the energy sector reforms will contribute to the economic stability of the country as it was the highest priority of the government to resolve the energy issues.
“We recognized the energy sector reforms will unleash the huge economic potential of Pakistan”, the Ambassador added.
He said that Japan was intended to continue providing necessary assistance to Pakistan in the energy sector while closely monitoring the progress of the reforms in coordination with their development partners.
He said the financial assistance was expected to contribute to efficient production of electricity and energy conservation so as to mitigate the emission of greenhouse gas from the energy sector.
“Japanese Prime Minister, Shinzo Abe has recently pledged to provide 1.3 trillion Yen of public and private climate financing in 2020 to assist developing countries including Pakistan,” he remarked.
Speaking on the occasion, Secretary EAD, Tariq Bajwa appreciated the financial and technical assistance of the government of Japan in social sector development of the country.
He said the financial and technical assistance would help the country to bring reforms in its energy sector to overcome energy sector issues and challenges.