Pakistan explores US support for energy sector reforms

October 27, 2024 (MLN): During a discussion with Geoffrey Pyatt, US Assistant Secretary of State for Energy Resources, Finance Minister Muhammad Aurangzeb outlined the pressing challenges faced by Pakistan's energy sector and the government's ongoing reform efforts, said a press release issued by the Finance Division yesterday. 

The Finance Minister acknowledged the US government's support for Pakistan’s transition to renewable energy, emphasizing the significance of this collaboration in advancing sustainable energy solutions.

On the sidelines of the 2024 Annual Meetings of the International Monetary Fund (IMF) and the World Bank, he also met with the representatives of S&P Global wherein he shared the update on macroeconomic stabilization, fiscal consolidation measures and external account developments which were reflected in improving key indicators across the board.

He informed that government financing cost was coming down which would reduce the debt servicing cost. He expressed the hope that S&P Global would upgrade the country’s rating soon.

The Finance Minister participated in a panel discussion in the high-level event "Growing Stronger: An Urgent Call to Improve Child Nutrition" organized by the World Bank in which he highlighted the high incidence of child stunting in Pakistan especially in rural areas and called for a multisectoral and whole-of-government approach to rectify the situation.

He emphasized the need for reforms in taxation, reduction in energy subsidies and improvement in the management of SOEs to create more fiscal space for increased investments in climate change, population control and child stunting.

He thanked the World Bank for including stunting in the Country Partnership Framework of the country as it amounted to investing in the country’s future.

Minister also held a meeting with Mr. Masatsugu Asakawa, President Asian Development Bank wherein he appreciated ABD’s partnership with Pakistan to support its development agenda and welcomed the launch of the new office of ADB in Islamabad.

He hoped that the Country Partnership Framework of ADB would be finalized soon. He commended ADB for the successful completion of the Capital Adequacy Framework and the exemption provided to Pakistan from the surcharges beyond exposure limits for the next three years.

He appreciated ADB’s support for a Policy-Based Loan of US$ 500 for the crucial Climate & Disaster Resilience Enhancement Program, which is going to be considered by the ADB Board on October 29.

Both sides agreed on the need for domestic revenue mobilization, regional cooperation and early completion of the ADB office in Islamabad.

In the meeting with Ms. Deemah Al Yahya, Secretary General of the Digital Cooperation Organization (DCO), Finance Minister highlighted the enormous potential that existed in the ICT sector in Pakistan.

He shared that the government was investing in an inclusive digital ecosystem to improve governance, citizens’ quality of life and economic well-being and emphasized closer collaboration in the digital infrastructure, digital economy, digital FDI, digital skills, and digital governance.

Other engagements of the Finance included attending the Annual Meetings Plenary of the World Bank Group and IMF, media interview with the Chinese Global Television Network (CGTN) and Joint Constituency Reception hosted by the Executive Directors of the World Bank and IMF.

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