France to provide $195M to Pakistan for upgrading power system

By Aamir Latif

KARACHI, Pakistan (AA) – France will provide a soft loan of $195 million to Pakistan for upgrading the South Asian country's power generation and transmission system.

Pakistan's secretary of the Economic Affairs Division, Kazim Niaz, and French Ambassador to Pakistan Nicolas Galey signed the Credit Facility Agreement in the capital Islamabad on Wednesday, said a statement from French Embassy.

The loan aims to finance several transmission lines and grid station projects of the state-run National Transmission and Dispatch Company (NTDC).

These projects, according to the statement, are located in the country's largest Punjab province.

Running out of foreign reserves amid long-stalled talks for resumption of an over $6 billion bailout package by the International Monetary Fund, the South Asian nuclear country has been facing a power generation and transmission crisis.

“This soft loan will support the NTDC in its transmission mandate and to provide reliable and efficient power in major cities of Punjab,” the statement said, adding that the funding will also help enhance the transmission of green energy and efficient power distribution in Pakistan.

It will also ensure a "reliable" power supply to one of Pakistan's biggest industrial and sports city of Sialkot.

Since 2006, Paris has committed $1.33 billion to Pakistan, with the clean energy sector alone mobilizing over $1 billion, the statement added.