The Asian Development Bank (ADB) has issued up to $300 million in loans to Pakistan to help the nation overcome some of its energy contraints.

Pakistan will use the loan to address financial sustainability, governance and energy infrastructure policy constraints in the energy industry, according to Smart Energy International.

The loan will support one of the three phases of the $1 billion Energy Sector Reforms and Financial Sustainability programme which is being led by the International Monetary Fund.

Inefficiencies within Pakistan’s energy sector cost the country’s economy up to $18 billion, or 6.5% of gross domestic product, in 2015, hence the need to improve policies and energy generation and supply capacity.