RECORDER REPORT

KARACHI: US Consul General in Karachi, Grace Shelton presided over the signing ceremony of a partnership agreement between the US Agency for International Development (USAID) and five Pakistani private banks, here on Friday.

The signing ceremony held at the residence of US Consul General and attended by the representatives of Habib Bank Limited, MCB Bank Limited, Faysal Bank Limited, Meezan Bank Limited and JS Bank Limited.

Through US funding, this 15-year partnership will provide up to a 50 percent guarantee for loans made for clean energy projects.

“The US government is excited to partner with Pakistan’s leading private commercial banks and support the banks’ efforts in promoting clean energy,” said USAID Assistant to the Administrator for Afghanistan-Pakistan Affairs, William Hammink. “Under the programme, smaller scale clean energy projects will be able to access long-term, Pakistani Rupee financing.

The facility is expected to significantly improve access to financing for these smaller scale projects and encourage private investment in clean energy,” he added.

Through this agreement, approximately $88 million in financing will become available to support the development of the clean energy sector in Pakistan. Partner banks will be able to extend debt financing to smaller scale clean energy projects, developers, and companies or to households and businesses purchasing clean energy equipment.

The US and Pakistan cooperate to support their efforts in energy growth through the US-Pakistan Energy Working Group under the US-Pakistan Strategic Dialogue. Under the US-Pakistan Clean Energy Partnership in October 2015, US assistance supports increased energy generation, its transmission to Pakistan’s national grid, improved distribution, management, and revenue collection, as well as policy reform.