US, FoDP investments in Pak linked to reforms for securing self-sufficiency

Islamabad, Sept 7 (ANI): The United States and the Friends of Democratic Pakistan (FoDP) have linked their investments in energy, reconstruction and water sectors in Pakistan to implementation of policy and management reforms, in order to secure self-sufficiency within a transition span of three years.

Officials said that the government agreed to a set of policy reforms in consultation with the Asian Development Bank (ADB), the Dawn reports.

They added that US President Barack Obama's Special Envoy for Afghanistan and Pakistan, Richard Holbrooke, had participated in FoDP deliberations a few weeks ago, and had told the authorities that reforms were an important aspect for facilitating investments.

"The key to progress will be the government's commitment to implement badly needed reforms and the commitment of the FoDP to help facilitate both public and private international investments in the energy sector," Holbrooke had said.

Pakistan and the FoDP agreed to the reforms regarding circular debt resolution and preventing its recurrence, and steady investment plans' implementation for generating a sustained requirement for energy financing.

The government gave an undertaking to the FoDP to withdraw subsidy from oil refineries and rationalise ex-refinery prices of products, and removing cross-subsidies from the industrial and commercial sectors to the domestic sector, which could lead to massive hike in tariff for domestic consumers.

Meanwhile, Pakistan President Asaf Ali Zardari asked the DFIs and finance companies to devise a plan in this regard. (ANI)