Pakistan seeks $1.3 billion for projects

Islamabad: Pakistan has sought a soft loan of $1,320.54 million from South Korea for extending its electricity supply network and sustain financial losses of the electric supply corporations, sources told Daily Times on Tuesday.

Sources said that government needed around $2,692.55 million to materialise such projects. The Ministry of Water and Power is seeking $1,320.54 million from Korea and the Economic Affairs Division has sent a formal request to South Korea in this regard.

Sources further said that government would use the money obtained under these heads also for the revamping/rehabilitation of irrigation system in provinces. The money would also be used for a 220-kv grid station and a Dadu-Khuzdar 220-kv transmission line. The project also includes provisions for IESCO (6th secondary transmission and grids), PESCO (6th secondary transmission and grids), FESCO (6th secondary transmission and grids), Punjab Barrages rehabilitation and modernisation project (excluding Khanki barrage) and 6th secondary transmission and grids of GEPCO.

Sources said that ministry of water and power has approached the Economic Affairs Division (EAD) to generate required funds as soft loans from different countries and financial institutions.

The EAD had sent a loan request to Korea but the country is giving money only for the GEPCO project. While this project that will extend six phase of GEPCO will cost $76.5 million; the ministry requires $18.8 million for the project.

Showing reservations over the other projects worth $1,301.74 million, the government of Korea has conveyed that these were commercial projects it could not provide funds as soft loans, an official said.

Sources said that the agreement for the loan is still under consideration.