Asian Development Bank said it approved a financial package meant to help Pakistan address chronic energy issues. File photo by Norbert Schiller/UPI |
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MANILA, Aug. 23 (UPI) -- Pakistan needs financial support to address critical energy issues that impede the potential for economic growth, the Asian Development Bank said.
"Power shortages are a major obstacle in Pakistan's economic development," the bank said in a statement. "With demand for electricity outpacing supply, inefficient and inadequate transmission and distribution systems are key bottlenecks in the development of the energy sector that is stifling growth and threatens social strife."
Pakistan consumes most of the natural gas it produces and the country has faced power issues because of aging infrastructure. In June, Hungarian energy company MOL, which has worked in Pakistan for nearly two decades, said it made a new discovery of oil and gas in Pakistan, bringing the total there so far to an even dozen.
The company at the time said the discovery would help improve the energy security situation in Pakistan.
The ADB said it approved an $810 million financial package to help address Pakistan's chronic energy woes.
"A reliable and sustainable power sector is critical to the economic growth and wellbeing of Pakistan," Megan Wolf, a regional energy specialist for the bank, said in a statement.
According to the ADB, Pakistan's power sector has a gap between supply and demand of about 5,000 megawatts, which has put significant pressure on the prospects for economic growth.
Last year, ADB approved combined loans of nearly $1.4 billion covering two programs meant to resolve key power sector issues in Pakistan. Most of the initial funding will support advanced metering infrastructure.
Pipelines slated for future development may help address shortages, though many of those projects depend in part on Iran or Afghanistan, where geopolitical issues may inhibit development.
