Business Recorder (BR) Research
Pakistan has been aid dependent to a large extent, with donor agencies providing funds for various sectors ranging from socio-economic stability and human development to economic growth and infrastructure. The United States is one of the most generous donors to Pakistan; however, other countries like Japan, Australia, Canada and the European countries have been unstinting too.
A look at the foreign assistance and aid disbursed shows that there are predilections when it comes to various segments of the country, and over the past eight years or so, the energy sector has become a good bet for many donors.
The country energy crisis has ballooned over the years where lack of transparency, governance, liquidity, efficiency, and growth has soiled the segment’s true potential. And with no room to maneuver for some sort of respite due to heightened external liabilities and debt, the country welcomes all that comes its way in this time of need. In 2014, Asian Development Bank funded 114 projects in the energy sector, which is about 16 percent of its total projects. Its thematic areas for funding in the energy segment have been the investment and reforms in energy and infrastructure. Similarly, German Development Cooperation has been allocating the funding, particularly for the renewable energy and power generation.
Recently, US Agency for International Development announced its completion of its Power Distribution Program for Pakistan. The agency’s thematic focus in the energy sector includes increasing the capacity and efficiency of power and energy sector. USAID’s energy programs in Pakistan have key goals of expanding production capacity, increasing distribution efficiencies, and supporting reform of the sector. Its Power Distribution Program worth $218 million was a five-year project from 2010 till 2015 where its main focus remained to bring efficiency in the distribution side of the power sector. According to the press release issued recently, the project resulted in an increase in the annual revenues of the country’s DISCOs by more than $400 million along with energy savings worth 200 megawatts.
Some achievements that can be enumerated include training of more than 32,000 energy experts, installation of 90,000 capacitors on agricultural pumps to reduce electrical losses, and replacement of 260,000 meters of distribution system wires. Other highlights include the improvement in the billing systems, the introduction of international best practices, installation of state-of-the-art systems to monitor and control of power flow, and provision of equipment for upgrading the distribution system.
USAID is also working on the increasing the energy production in the country along with bringing policy reforms in the sector. U.S.-funded projects have brought over 1500 megawatts of power in the country. Out of these, 900 megawatts were added through renovation and rehabilitation of major dams and thermal power plants.
While it is difficult to quantify how much improvement has been brought through Uncle Sam’s or aid and or any donor’s foreign assistance for that matter, it would be safe to assume that besides the miniscule foreign investment, the donors have a big role to play in whatever efficiency and technological up gradation achieved in the sector.
Published:September 03, 2015
