In 2006, the Asian Development Bank (ADB) approved a 10-year, $800 million multitranche financing facility (MFF) to support an investment program that aimed to assist Pakistan in overcoming the capacity constraints in its power transmission system.
During program preparation, Pakistan’s power system had insufficient capacity to meet growing demand, and electricity was routinely rationed during peak demand.
Sindh is the second most populous province in Pakistan. In 2006, it had a total 38 million people, nearly half of whom lived in the urban areas. Karachi and Hyderabad, the province’s two largest cities, accounted for about 70% of the urban population.
In 2010, the worst floods in Pakistan’s history affected 100,000 square kilometers of land and 20 million people. They impacted more than one-tenth of the country’s population and caused about 1,800 deaths. Basic transport and irrigation facilities were badly damaged in 80 of the country’s 110 districts.
The transport sector is important to Pakistan’s economy. In 2005, it comprised about 10% of the country’s gross domestic product. Road transport was the dominant mode, accounting for 91% of passenger and 96% of freight traffic. The national highway network, consisting of 8,320 kilometers (km) of highways and 710 km of motorways, carried 75%–80% of all national traffic.
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