ISLAMABAD: Pakistan is expected to receive $1.5 billion next month from the World Bank and Asian Development Bank as part of growth and energy sector programme loans, according to an official.

When contacted, Finance Secretary Dr Waqar Masood Khan confirmed that the World Bank would disburse $1bn -- $500 million under a jobs and growth programme and a $500m energy sector programme loan. The ADB would release $500m energy sector loan next month, he said.

Dr Khan did not agree that the $1bn energy sector loans from could be delayed because of hiccups in the gas tariff rationalisation programme, saying some necessary steps had already been taken while others were in the pipeline.

Another official, however, said that the disbursement of energy sector loans was partly dependant on natural gas tariff rationalisation that had been pending for more than a year.

A tariff revision due on July 1 last year had been held in abeyance by Prime Minister Nawaz Sharif to absorb the impact of increase in power tariff.

The notification of consumer-end tariff on the subsequent deadline — Jan 1 — also could not be made due to legal complications arising out of some stay orders in high courts and lack of quorum at the Oil and Gas Regulatory Authority (Ogra) to take key decisions.

Gas utilities had pointed out quorum to the courts to block Ogra from reducing the limit of ‘unaccounted for gas’ losses.

Mr Khan, however, said that some revenue requirement of the multilaterals on account of natural gas had already been addressed in the shape of recent increase in gas infrastructure development cess (GIDC) on some consumer categories. The remaining issues on tariff determinations would also stand resolved over the next few weeks as Ogra’s composition has been completed and it had gone through the hearing process.

An Ogra official said the regulator had completed public hearings on revenue requirements of the two gas utilities for financial year 2013-14 and had now sought policy guidelines from the government on the issue of unaccounted for gas losses.