KARACHI: Consul General Grace Shelton presided over the signing of a partnership agreement between the U.S. Agency for International Development (USAID) and Habib Bank Limited, MCB Bank Limited, Faysal Bank Limited, Meezan Bank Limited and JS Bank Limited today. Through U.S. funding, this 15 year partnership will provide up to a 50 percent guarantee for loans made for clean energy projects.

“The U.S. Government is excited to partner with some of 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 during his remarks. “Under the program, 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 United States and Pakistan cooperate to support their efforts in energy growth, including through the U.S.-Pakistan Energy Working Group under the U.S.-Pakistan Strategic Dialogue.  Under the U.S.-Pakistan Clean Energy Partnership, announced by President Obama and Prime Minister Sharif in October 2015, U.S. assistance supports increased energy generation, its transmission to Pakistan’s national grid, improved distribution, management, and revenue collection, as well as policy reform.