The World Bank has approved $55 million in additional financing for Pakistan’s Electricity Distribution Efficiency Improvement Project.
The decision was made on June 27, 2025, under the authority of the World Bank’s Board of Executive Directors. The approval aims to boost the performance of power distribution companies in selected regions of the country.
According to Business Recorder, technical discussions on the project took place earlier on June 18. These talks were held at the World Bank’s office in Islamabad. The goal of the new funding is to improve efficiency, support ongoing power sector reforms, and help implement the Country Partnership Framework.
This additional financing will focus on key power distribution companies, including Hyderabad Electric Supply Company (HESCO) and Peshawar Electric Supply Company (PESCO). Although these companies are not currently up for privatization, they are considered crucial to Pakistan’s energy reforms.
The negotiations between the World Bank and the Government of Pakistan included several important documents. These included the draft Financing Agreement, Project Agreements with HESCO and PESCO, the Project Paper, a Disbursement and Financial Information Letter, and the Environmental and Social Commitment Plan.
The World Bank has confirmed that all relevant documents will be made public. This will happen once the Government of Pakistan gives its consent, in line with the Bank’s Access to Information Policy.
This funding is part of a broader plan to fix problems in Pakistan’s power distribution system. The support is also expected to contribute to better service delivery and fewer losses in power transmission.
The World Bank continues to be a key partner in helping Pakistan reform its energy sector. With this latest move, the Bank shows its commitment to improving infrastructure and supporting sustainable development in the country.The newly approved $55 million funding further strengthens the World Bank’s ongoing support for Pakistan’s energy and infrastructure reforms. Earlier, the country also secured a major $700M World Bank loan for Reko Diq, highlighting deepening financial cooperation.
