Islamabad, December 31, 2024 – The Asian Development Bank (ADB) and the Government of Pakistan signed a $200 million loan agreement on Tuesday aimed at enhancing the country’s electricity distribution system.
The agreement was signed by Dr. Kazim Niaz, Secretary of the Economic Affairs Division (EAD), and Asad Aleem, ADB Deputy Country Director, during a ceremony in Islamabad. The project, titled the Power Distribution Strengthening Project, seeks to modernize the infrastructure of three major distribution companies—Lahore Electric Supply Company (LESCO), Multan Electric Power Company (MEPCO), and Sukkur Electric Power Company (SEPCO).
The initiative includes the installation of advanced metering infrastructure, implementation of data management systems, and the introduction of an asset performance management system (APMS) to improve efficiency and reduce energy losses.
Dr. Kazim Niaz highlighted the significance of timely execution and efficient use of the ADB loan. He urged all stakeholders, particularly the distribution companies (DISCOs), to ensure the project’s completion within the designated timeline. He further expressed appreciation for ADB’s unwavering support for Pakistan’s energy sector and its role as a dependable development partner.
“This project is a critical step toward upgrading and modernizing our power distribution infrastructure, aiming to significantly reduce energy losses and enhance the reliability of the electricity supply,” said Dr. Niaz.
Asad Aleem commended the Government of Pakistan for its proactive role in facilitating the project. He assured that ADB would maintain close collaboration with the Ministry of Economic Affairs and other stakeholders to align its support with Pakistan’s broader developmental goals.
“This agreement underscores ADB’s commitment to supporting Pakistan in its energy sector transformation, ensuring a sustainable and efficient power supply for future economic growth,” Aleem remarked.
The Power Distribution Strengthening Project is expected to bolster the capacity of Pakistan’s power distribution network, reduce technical and non-technical losses, and ensure a more reliable supply of electricity to households and businesses. It forms part of ADB’s broader strategy to promote energy security and economic stability in Pakistan.