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PRESS RELEASE
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PRESS RELEASE N0: JPNEMPAK 010-23
Islamabad: 31st March, 2010
The Government of Japan, today, extended a soft loan of 23.3 billion Yen (approximately 260 million US dollars) to the Government of Pakistan for the National Transmission Lines and Grid Stations Strengthening Project. The notes were signed and exchanged between Mr. Chihiro Atsumi, Ambassador of Japan to Pakistan and Mr. Sibtain Fazal Halim, Secretary Economic Affairs Division, Government of Pakistan, in Islamabad.
Pakistan’s overall economic growth is affected by insufficient power supply, in spite of the increasing domestic electricity demand. To find solutions to the problems posed, the Friends of Democratic Pakistan are currently working on an Energy Sector Task Force. For effective power transmission, it is crucial to prevent transmission loss and reinforce stable and efficient supply lines. In this respect, the assistance by the Government of Japanese for enhancing and establishing additional transmission lines and grid stations in Shikarpur and Lahore should be of meaningful significance. After the completion of this project, the efficiency of the power transmission will be improved by 156 MW, which is equivalent to the annual power consumption of two million people in Pakistan. This assistance by the Government of Japan is expected to reduce the power loss and improve the power accessibility of the people in the areas. So far, Japan has implemented a total of 17 soft loan projects in the energy sector, out of the 79 soft loans provided to Pakistan. Particular emphasis is being placed on enhancing supply lines and grid stations.
Japan is fully committed to support Pakistan in its endeavours to fight against terrorism and, at the same time, to create a strong and sustainable economic foundation. In this regard, the Government of Japan pledged one billion dollars to Pakistan over a two year period at the Tokyo Donor’s Conference last year. Even with the change in the Japanese administration, the first task by the new administration was to assure their commitment of swift implementation of the pledged assistance, as stated by the Japanese Chief Cabinet Secretary in November 2009. To this date, Japan has been steadily delivering its pledge, at approximately 452 million dollars including this project.
Ambassador Atsumi stated that he is convinced that this assistance will prove vital in supporting the efforts of the Government of Pakistan and will further strengthen the existing good relationship between Japan and Pakistan. (End)