According to a press statement from the Power Division on Monday, the World Bank (WB) has agreed to give Pakistan more than $3 billion for infrastructure development in the energy sector.
The Dasu hydropower project will also receive help from the international lender. In addition to supporting provinces with the installation of solar projects, it claimed that the World Bank was helping with energy efficiency and conservation programmes. The event happened after Khurram Dastgir, the energy minister, and a group from the World Bank met.
The hike in electricity tariffs, which Dastgir described as “politically challenging,” was one of the “tough and painful decisions” the administration has made in the power sector, but he assured the delegation that it was dedicated to achieving sustainability in the energy sector.
The minister said the government is committed to providing relief to the common man. The minister appreciated that the Bank recognised the challenges faced by the country and the difficult decisions taken in wake of it.
He continued by saying that the economy and energy sector of Pakistan had been “devastated” by climate change. The CASA-1000 and Dasu power projects were also included in the briefing for the delegation.
Punjab and Khyber Pakhtunkhwa will get separate loans totalling $500 million according to two agreements the World Bank and the government reached last week. The loans totalled $300 million for the Khyber Pakhtunkhwa Accessibility Project and $200 million for the Punjab Resilient and Inclusive Agriculture Transformation Project.
Moreover, Guangzhe Chen, the South Asia Regional Director for Infrastructure at the World Bank, stated on Monday that Pakistan and the World Bank should keep collaborating to address macroeconomic issues and promote renewable energy for the nation’s long-term growth. Chen also informed the audience that the World Bank presently has 54 projects totalling $13.1 billion in Pakistan.