‘Crippling’ energy sector impeding growth in Pakistan: ADB

Share
In a development report released, the ADB said it expected Pakistan's economy to expand from a 4.2 percent growth rate in 2015 to 4.8 percent by next year. A net importer of energy resources, the regional bank said, lower oil prices and soft inflationary pressures were pushing Pakistan's economy forward.
"Pakistan needs to stay the course of macroeconomic and structural reforms, in particular in revenue collection, the energy sector, and in revitalizing public sector enterprises that have been causing a fiscal drain," Werner Liepach, the bank's director for Pakistan, said in a statement.
Continued momentum for Pakistan depends in part on liberalising its trade activity and addressing chronic power shortages.
Pakistan consumes most of the natural gas it produces and the country has faced power issues because of aging infrastructure. The ADB described the status of the energy sector in Pakistan as "crippling."
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.
Related: PM Nawaz for enhancing Pak-Iran trade volume to $5b
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.
Iran's President Hassan Rouhani was in Islamabad earlier this week to discuss restarting development of a long-delayed natural gas pipeline to Pakistan now that sanctions pressures are easing on the Islamic republic.
Read more: Pakistan lifts sanctions on Iran
Last year, the 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.
Addressing lingering issues like energy, the bank said, are "critical for fiscal and economic sustainability."
- Three-day sports festival kicks off in Khalti Frozan Lake today12:05 AM | 28 Jan, 2021
- PM Imran, singer Shehzad Roy share views on promotion of education12:00 AM | 28 Jan, 2021
- Shafqat Mehmood green-lights launch of Single National Curriculum ...11:38 PM | 27 Jan, 2021
- Woman declared dead in Pakistan comes back to life, gets up and walks ...11:19 PM | 27 Jan, 2021
- Lifebuoy Partners with PCB as Official Hygiene Partner for 202111:00 PM | 27 Jan, 2021
- Natasha Ali shares her wedding pictures with fans07:43 PM | 27 Jan, 2021
- Faysal Qureshi reacts to news of couple confessing to sexually ...07:32 PM | 27 Jan, 2021
- WATCH – Muneeb Butt shares a heartwarming father-son moment03:57 PM | 27 Jan, 2021
- Hollywood's top female celebs who lift weights to stay fit02:36 PM | 22 Jan, 2021
- Here's how world leaders responded to Biden's inauguration as POTUS07:24 PM | 21 Jan, 2021
- Stars who turned down plastic surgery07:32 PM | 17 Jan, 2021
- Stars who dated in the past11:38 PM | 5 Jan, 2021