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Loan of $195 Million approved for Pakistan by World Bank

The World Bank’s Board of Executive Directors has authorised a USD 195 million loan for Pakistan to strengthen power distribution and conduct energy sector reforms to improve service quality for consumers.

“The Electricity Distribution Efficiency Improvement Project (EDEIP) will help distribution enterprises in optimising their operations in order to manage electricity supply better and increase the electrical grid’s reliability.


It focuses on cost-cutting measures to boost revenue collection and decrease losses, as well as on modernising operations via the use of technology and information systems. In addition, the project would invest in climate-resilient infrastructure, including grid stations and transmission lines, which are vital to distribution and utility services “, the World Bank announced this in a statement on Saturday.

Najy Benhassine, World Bank Country Director for Pakistan, said that increasing the efficiency of the electrical distribution firms that distribute energy to consumers is critical for the power sector’s long-term financial stability.


Najy Benhassine further added that these measures would strengthen the operational and financial performance of certain distribution businesses, so increasing their bankability would generate further private sector engagement.

According to the announcement, the EDEIP would assist institutional changes to promote governance and transparency, as well as build methods and practices to improve management performance and regulatory compliance. Furthermore, the initiative will aid in the development of distribution businesses’ technical competence by providing training programmes, tools, and equipment to increase staff performance in core utility activities.


“The project will concentrate on enhancing the operations and governance of Hyderabad Electric Supply Company, Multan Electric Power Company, and Peshawar Electric Supply Company,” stated Mohammad Saqib, the project’s Task Team Leader.

Mohammad Saqib further added that under the leadership of the Ministry of Energy, this programme would bolster market reforms, reduce transmission and distribution losses, and improve the sector’s financial performance.


The EDEIP supports the World Bank’s continuing assistance for the power industry, which includes investments in the transmission network and renewable energy production, as well as reforms under the PACE, which focuses on financial sustainability and a transition to low-carbon energy.

According to the statement, the project would boost the dependability of electrical services for residential, agricultural, commercial, and industrial sector users in project regions, as well as contribute to the reduction of carbon emissions.