Islamabad: The World Bank will provide a $195m loan to improve electricity supply and distribution for consumers in Pakistan.
Federal Secretary for Economic Affairs Mian Asad Hayaud Din on Thursday signed the loan agreement while representatives of HESCO, MEPCO and PESCO signed the project agreements.
The financing will improve operational efficiency in targeted areas of three Electricity Distribution Companies i.e. Hyderabad Electric Supply Company (HESCO), Multan Electric Power Company (MEPCO), Peshawar Electric Supply Company (PESCO) and achieve progress on the power sector reform agenda.
According to a notification issued by Ministry of Economic Affairs, the “Electricity Distribution Efficiency Improvement Project” aims to improve reliability of electricity supply and reduce technical losses through new grid stations, augmentation and upgradation of existing grid stations.
The project will increase the reliability of electricity services for residential, agricultural, commercial, and industrial sector consumers in project areas, and will contribute to reducing carbon emissions.
The project will support the Power Division in fulfilling its policy mandate under the National Electricity Policy 2021 and implement power sector reforms as well.
World Bank Country Director Najy Benhassine said that the long-term financial viability of the power sector depends on improving the efficiency of electricity distribution companies that deliver electricity to consumers.
Mian Asad Hayaud Din appreciated the World Bank management for extending continuous support to the present government to promote inclusive and sustainable economic development.