Launch of the Pakistan Private Sector Energy Project cooperation between USAID and UNIDO


In partnership with the United States Government, the United Nations Industrial Development Organization (UNIDO) officially launched the Pakistan Private Sector Energy Project on 3 February at a dedicated virtual event which brought together key stakeholders from the private and public sector. PFAN will play in integral part in this programme by expanding the portfolio of commercially-viable small and medium-scale clean energy projects and providing support to enable them to access financing and reach financial close.

PFAN’s services will help to stimulate clean energy technologies in Pakistan and contribute to the country’s efforts on mitigating climate change. ‘’ Given PFAN’s very successful track record, I am confident the project will be instrumental in supporting Pakistan to reach its renewable energy target of 30% of total power generation by 2030 and to unlock its untapped potential in renewable energy,’’ says Umur Gokce, PFAN Programme Manager.


The project targets specific constraints to private sector engagement and investment in Pakistan’s energy sector by:

–           Strengthening – both in terms of quantity and quality – the pipeline of investment-ready propositions;

–           Reducing the perceived risk of investors; and

–           Supporting the mainstreaming of low carbon, climate resilient investments


‘’This new USAID-funded project will complement the Pakistani government’s efforts in facilitating a cleaner, cheaper, more climate friendly, and sustainable energy mix for Pakistan,” says the Minister for Climate Change, Malik Amin Aslam.

“The U.S. Government is partnering with the Government of Pakistan to strengthen Pakistan’s energy sector and make it more competitive through the use of sustainable energy sources,’’ says USAID Mission Director Julie Koenen. “Working with the Government of Pakistan, we have supported infrastructure projects, operational improvements and policy reforms to help the energy sector function more efficiently and sustainably. These efforts are helping Pakistan meet the needs of its growing population and economy.”

Nadia Aftab, Head of UNIDO Office in Pakistan, said in her speech that ‘’UNIDO is proudly working alongside Pakistani stakeholders to support efforts related to a transition to a sustainable energy future, through the application of renewable energy for productive uses, adoption of the efficient use of energy by industry and the introduction of low-carbon technologies and processes.’’

Since 2010, USAID has partnered with the Government of Pakistan to add more than 3,900 MW to the national grid. These investments have benefitted more than 47 million Pakistanis, reducing costs for energy distribution companies by $429 million and leveraging more than $2.8 billion in private investment. Furthermore, USAID has also supported the construction of new transmission lines and substations to evacuate power from wind power projects to the national grid, as well as rehabilitated thermal and hydroelectric power plants.

To ensure Pakistan’s future energy security, the U.S. Government will continue to provide technical assistance to improve planning processes and operational procedures, introduce new technologies and transition towards a competitive market structure with more participation by private sector companies.