Federal Minister for Energy Omar Ayub Friday announced that Pakistan has received a loan of US$300 million from Asian Development Bank (ADB) for reforms in the energy sector.

Announcing the arrival of US$300 million from the ADB, Omar Ayub said that other than reforms in the energy sector, the money would also help in strengthening the foreign reserves of the country.

“The approval of the loan shows the confidence of foreign lenders on implementation and success of the reforms agenda,” he said adding that the reforms would help the government in dealing with the circular debt issue in the energy sector.

Pakistan has recently signed six agreements with the Asian Development Bank (ADB) to obtain financing of US$1.54 billion.

The agreements were signed by the secretary of the economic affairs division and country director of the ADB in the presence of Minister for Economic Affairs Omar Ayub Khan.

Under the agreements, US$300 million would be provided for reforms in the energy sector, US$385 million for improvement of infrastructure in five cities of the Khyber Pakhtunkhwa (KP) province, and Rs235 million for the construction of the 222-kilometer Shikarpur-Rajanpur Indus Highway.

The ABD would further provide US$603 million for the expansion of Ehsaas program. It will further provide financing of US$5 million for Kurram Tangi projects and US$15 million for KP cities.