World Bank approves $195 Million loan for Pakistan

ISLAMABAD: The World Bank’s Board of Executive Directors have approved $195 million in financing to support Pakistan in improving electricity distribution to increase service quality for consumers.

The agreement of the financing between Pakistan and the WB was inked in Islamabad, the economic affairs division said.

Secretary economic affairs division Mian Asad Hayauddin and WB’s Operation Manager Anjum Ahmed signed the loan agreement. The representatives of Hyderabad Electric Supply Company (HESCO), Multan Electric Supply Company (MEPCO) and Peshawar Electric Supply Company (PESCO) also signed the agreement.

The Electricity Distribution Efficiency Improvement Project (EDEIP) will help distribution companies improve operations to manage the electricity supply more efficiently and increase the reliability of the electrical grid.

It focuses on cost-saving interventions to increase revenue collection and reduce losses, and on modernizing operations by employing technology and information systems. The project will also invest in climate-resilient infrastructure, particularly grid stations and transmission lines, which are critical to distribution and utility services.

Earlier this year, the international lende had approved $800 million in financing for two programs in Pakistan — the Pakistan Program for Affordable and Clean Energy and the Second Securing Human Investments to Foster Transformation.

Secretary, Ministry of Economic Affairs, Noor Ahmed and Melinda Good, Acting Country Director, World Bank signed the two important program loan agreements worth $800 million on behalf of their respective sides.

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