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Securing energy supply for Pakistan’s winter period
January 8, 2024: The OPEC Fund for International Development (OPEC Fund) and the Islamic Trade Finance Corporation (ITFC) are joining forces to secure energy supplies for Pakistan as the coldest period of the year begins. Both development institutions are providing US$50 million each to finance the import of much needed energy carriers.
Winters are cold in Pakistan with minimum mean temperatures in the Punjab of about 4°C in January and sub-zero temperatures in the far north and Balochistan. At the same time Pakistan is a mountainous country and home to thousands of peaks above 6.000 meters. Securing energy supplies requires complex infrastructure and advanced logistics.
Although Pakistan has started to step up investments in hydropower and other renewable sources of energy with considerable potential (solar, wind and biomass), the country remains heavily dependent on the import of fossil fuels such as oil, gas and LNG. The joint OPEC Fund/ITFC facility aims to address power shortages and secure supplies at a critical moment when a growing population and economy are pushing up energy demand.
The OPEC Fund launched its first operation in Pakistan in 1976 and to date has approved more than US$645 million through 33 loans. The largest ongoing operation is the Mohmand Dam, which upon completion will generate 740 MW of hydroelectricity spurring growth and supporting lower cost energy generation. The government has declared the development of hydropower a national priority and has goal of an overall 50 percent emissions reduction by 2030.
About the OPEC Fund
The OPEC Fund for International Development (the OPEC Fund) is the only globally mandated development institution that provides financing from member countries to non-member countries exclusively. The organization works in cooperation with developing country partners and the international development community to stimulate economic growth and social progress in low- and middle-income countries around the world. The OPEC Fund was established in 1976 with a distinct purpose: to drive development, strengthen communities and empower people. Our work is people-centered, focusing on financing projects that meet essential needs, such as food, energy, infrastructure, employment (particularly relating to MSMEs), clean water and sanitation, healthcare and education. To date, the OPEC Fund has committed more than US$24 billion to development projects in over 125 countries with an estimated total project cost of US$190 billion. The OPEC Fund is rated AA+/Outlook Stable by Fitch and AA+, Outlook Stable by S&P. Our vision is a world where sustainable development is a reality for all.