The World Bank has approved an additional $55 million in financing for Pakistan’s Electricity Distribution Efficiency Improvement Project.
The approval was granted on June 27, 2025, under the delegated authority of the World Bank’s Board of Executive Directors, reported Business Recorder.
Technical discussions on the financing were held earlier on June 18 at the World Bank’s Islamabad office. The objective of the additional financing is to improve operational efficiency in selected areas, support the broader power sector reform agenda, and advance the Country Partnership Framework between Pakistan and the World Bank.
Negotiations covered various documents, including the draft Financing Agreement between the Government of Pakistan and the World Bank, Project Agreements with HESCO and PESCO, the Project Paper, Disbursement and Financial Information Letter, and the Environmental and Social Commitment Plan.
While both HESCO and PESCO have not been listed for privatization, they remain critical focus areas for performance reform. The World Bank has indicated that relevant documentation will be made public in line with its Access to Information Policy, pending the Government of Pakistan’s consent.
