Pakistan has approached the Asian Development Bank for help on circular debt. The government wants funds to clear Rs1.7 trillion power sector liabilities. Officials also aim to refinance costly commercial loans at better terms.
Power Minister Awais Leghari made the request during a meeting with an ADB delegation. He asked for longer repayment periods and lower interest rates. The goal is to reduce electricity tariffs and stabilize the national grid.
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Moreover, officials said expensive power rates have hurt demand for years. Many consumers shifted to solar energy, creating grid challenges. Cheaper debt could revive consumption and reduce pressure on utilities.
The government also requested support for smart meter expansion across power companies. It highlighted the need for private investment in transmission systems. Officials stressed financing gaps and high upfront costs.
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Pakistan said clean energy growth needs strong financial backing. The minister noted progress despite limited funding support. He said ADB help on circular debt could restore investor confidence and grid stability.