Pakistan gets ADB backing for energy reforms

The Asian Development Bank stands behind an energy overhaul in Pakistan, though Islamabad needs to do its part to shore up financing, the ADB president said.

ADB President Takehiko Nakao wrapped up his two-day visit Thursday with meetings with Pakistani Finance Minister Ishaq Dar.

Nakao said Pakistan has a "tremendous" opportunity for growth given its strategic location, its young population and its access to rich natural resources.

Pakistan is working to reform an energy sector plagued by deteriorating infrastructure by seeking outside help for construction of liquefied natural gas facilities. The ADB is already behind a gas pipeline planned from Pakistan, though Islamabad needs to do its part, Nakao said.

"Progress depends on the government's efforts to strengthen infrastructure investment, enhance tax revenue, spend more on health and education, and improve the business environment to attract investments," he said in a statement.

The Pakistani finance minister, for his part, said the government has arranged the necessary financing to build hydroelectric projects that could generate 4,500 megawatts of power for the sagging grid.