The Asian Development Bank (ADB) and USAID are preparing a sustainable and integrated energy action plan in a bid to mobilise the international community under Friends of Democratic Pakistan (FoDP) banner, thereby facilitating the conversion of pledges made in Tokyo donor conference held in April 2009 to disbursements.
Sources said that Pakistan requires investment to mitigate the energy crisis but poor response from FoDP countries is a major hindrance in expediting work on the energy projects. Hiring of consultants is in progress, and they would be responsible for producing a report and an action plan on the energy sector to be presented before the upcoming FoDP Ministerial meeting scheduled during the current year.
The consultants will support the development of an efficient and financially sustainable energy sector in Pakistan to overcome financial challenges. The draft of the report is likely to be finalised in May 2010. FoDP countries have disbursed only $632 million out of total pledges worth $2.2 billion for the current financial year 2009-10.
"Now the government expects to receive $1.2649 billion from FoDP till June 30, 2010, against the budgetary estimates of $2.2 billion," sources said, adding that the government had hoped to receive $406.7 million from FoDP in third quarter (January-March) but received only $174 million budgetary grant from United States.
Pakistan faces both water and power crises. The government has recently reduced the size of Public Sector Development Programme (PSDP) for ongoing financial year from Rs 421 to Rs 300 billion due to poor cash inflows from FoDP. Under the revised PSDP, the allocation for water sector has been reduced to Rs 28.5 billion from Rs 47.2 billion and to Rs 14 billion from Rs 20.335 billion for power sector earmarked in budget.
FoDP summit held in New York in September 2009 agreed to assist Pakistan in preparing a sustainable and integrated energy plan. Summit leaders mandated the ADB to lead in mobilising international assistance to Pakistan for the energy sector. Leaders requested a report and an action plan on the energy sector at the next ministerial meeting of the FoDP.
According to sources, a Pakistan Energy Sector Task Force comprising FoDP members has been formed to prepare an action plan and a report on the energy sector, as mandated by the FoDP Summit. The team of consultants will support the Energy Sector Task Force to prepare the report and an action plan for presentation at the next FoDP Ministerial meeting. "A consultative process will be initiated to take all members of the Task Force and government of Pakistan on board to conduct analysis and recommendations of the report and action plan," sources added.
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