World Bank gives approval to $55 million funding for Pakistan's electricity distribution
The World Bank has approved an additional $55
million to support Pakistan’s Electricity Distribution Efficiency Improvement
Project, aiming to enhance the performance of key power distribution companies
(DISCOs).
This approval, granted on June 27, 2025, under the delegated authority of the World Bank’s Board of Executive Directors, was
reported by Business Recorder.
Earlier technical discussions on the funding
took place on June 18 at the World Bank’s Islamabad office. The additional
financing is intended to boost operational efficiency in targeted regions,
align with Pakistan’s broader power sector reforms, and strengthen the ongoing
Country Partnership Framework between the World Bank and Pakistan.
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The negotiations involved several critical
documents, including the draft Financing Agreement between the Government of
Pakistan and the World Bank, Project Agreements with Hyderabad Electric Supply
Company (HESCO) and Peshawar Electric Supply Company (PESCO), the Project
Paper, Disbursement and Financial Information Letter, and the Environmental and
Social Commitment Plan.
Although HESCO and PESCO are not slated for
privatization, both remain focal points for performance improvements. The World
Bank has confirmed that relevant documentation will be disclosed in accordance
with its Access to Information Policy, subject to approval from the Government
of Pakistan.
Source: Pro Pakistani