Pakistan

Present in Pakistan since 2006, AFD offers financing solutions and technical assistance to support the Pakistani government in its development policy. AFD works with government partners and local authorities to develop low-carbon infrastructures and improve access to essential services for the population.
  • logo linkedin
  • logo email
lake, Pakistan, wilderness
AFD and Pakistan: promoting green and inclusive growth
lake, Pakistan, wilderness

Supporting the energy transition

hydroelectricity, energy, water, Jaggran, Pakistan

Supporting the energy transition

Pakistan's energy sector is undergoing a major crisis: the country manages to meet only half of its electricity demand. The frequent electricity outages handicap businesses and interrupt industrial production, contributing further to the degradation of the economic situation. 

AFD's intervention in Pakistan aims at resolving this crisis by developing low-carbon energy alternatives. Pakistan's water resources provide the country with a vast and mostly untapped source of hydroelectric potential. Of this potential, estimated to be about 54 GW, only 12% has been tapped. AFD is therefore becoming increasingly involved in the financing of energy effectiveness by optimising the performance of Pakistan's existing hydroelectric plants, in addition to improving access to reliable, affordable energy. 

A key actor in Pakistan's energy transition, AFD's approach involves the generation of decarbonised energy (mainly hydroelectricity and solar), the upgradation and strengthening of the distribution network, and being a part of policy dialogue around the sector. For instance, we are financing the rehabilitation of the Warsak and Mangla hydroelectric power stations as well as the construction of the Jaggran-11 and Harpa hydroelectric power stations. Apart from benefiting the economy by allowing for more affordable power production, these projects also benefit local communities, providing support for flood prevention and warning systems. 

Strengthening the water and sanitation sector

woman, water access, Pakistan, woman, Pirozzi

Strengthening the water and sanitation sector

Pakistan's growing population and rapidly developing urban centres have raised the challenges of provision of basic services to its people. lnvestment in this sector is vital, which is why, as of April 2018, AFD has been investing in improving access to and provision of water and sanitation services in Pakistan. 

AFD has granted a loan of 95 million euros to the Faisalabad Water and Sanitation Agency (F-WASA). The objective is to increase drinking-water production by 30 million gallons per day, by building a new drinking-water production plant, by increasing the existing plant and by improving the effectiveness of its distribution network. 

ln addition to increasing the city's drinking water production capacity, AFD also works towards a global vision of ensuring the sustainability of such investments. AFD's strategy in this sector therefore also seeks to combat water lasses (physical and commercial), extend the distribution network to new neighbourhoods, and improve the financial viability of the sector through improving performance and thereby increasing service revenue. 

We are also providing capacity building for the sector by supporting Al Jazari Academy, the institution that ensures the training of Pakistan's water agency professionals. The strategic importance this sector has on the future of the country means continued support from the AFD in the coming years. 

Helping guide urban development

Lahore, city view, Pakistan

Helping guide urban development

Pakistan is one of the most urbanised countries in the region. Since 1951, Pakistan's urban population has been growing at the rate of 4% per year. By 2030, 60% of the total population will live in cities and the country will have 12 agglomerations exceeding one million in habitants. 

lnnovative approaches in urban planning, access to basic services and urban transport performance is therefore vital to the country's growth and productivity. Pakistan's cities need to develop in order to withstand its rapidly increasing urban population. 

AFD's strategy in Pakistan is aimed at supporting urban growth while improving the quality of life and the economic attractiveness of agglomerations. For this reason, AFD's focus is on urban mobility and transport infrastructure in fast-growing cities in order to limit congestion in cities, air pollution and C02 emissions. ln addition, AFD will increase the attractiveness of cities by financing the safeguarding and enhancement of their historical heritage and contributing to the development of the tourism sector.

804
million euros committed in 12 years
23
projects financed since 2006
610
million euros committed in favour of the clean energy sector

Pakistan is the sixth most populated country of the world and lies at the crossroads of several highly strategic Asian regions. Bordered by the Arabian Sea and surrounded by the two giants of the continent (India and China) as well as by Afghanistan and Iran, Pakistan plays a crucial role in the region’s geopolitical balance. Since it obtained its independence in 1947, Pakistan’s foreign policy has been very influenced by its rivalry with India, which has given rise to three wars between the countries. Even though relations have calmed down since the 2000s, the question of Kashmir still remains very sensitive.

Pakistan’s demography is dynamic, and the emergence of a consumer middle class has generated growth in the population’s needs. Pakistan is currently facing a serious energy crisis, and the frequent electricity outages have a considerable negative impact on the Pakistani economy (estimated at a loss of 2 or 3 percentage points in GDP growth rate) and on the living conditions of the country’s inhabitants.

AFD has been active in Pakistan since 2006 with a “green and inclusive growth mandate”. It’s especially involved in financing energy efficiency and the production of hydroelectricity. Its actions thus target renewable energies in order to further climate change mitigation and adaptation. To fulfill its goals, AFD provides sovereign and non-sovereign loans, and it mobilizes European Union grants as part of the Asia Investment Facility.

Interactive map
This map is for illustrative purposes only and does not engage the responsibility of the AFD Group
Thematics
Funding type
Antennas
Filters

Thematics

Tout cocher
Tout décocher

Funding type

Tout cocher
Tout décocher

Antennas

Display local antennas

Filters

Launch search
See map of all projects

Contact