The World Bank (WB) has agreed to provide more than $3 billion to Pakistan for infrastructure development in the energy sector, the Power Division said in a press release on Monday.
The Dasu hydropower project will also receive help from the international lender. In addition to assisting provinces with the installation of solar projects, it claimed that the World Bank was helping with energy efficiency and conservation programs.
The development followed a meeting between the World Bank delegation and Minister for Energy Khurram Dastgir.
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 committed to achieving sustainability in the energy sector.
“The minister declared that the administration is committed to helping the average person. The minister was grateful that the Bank acknowledged the nation’s difficulties and the difficult decisions that had to be made as a result.
He continued by saying that the economy and energy sector of Pakistan had been “devastated” by climate change.
The delegation was also briefed on the CASA-1000 and Dasu power projects.
Last week, the World Bank also signed two agreements with the government to extend $500 million worth of two separate loans to Punjab and Khyber Pakhtunkhwa.
The loans pertained to Punjab Resilient and Inclusive Agriculture Transformation Project worth $200 million and Khyber Pakhtunkhwa Accessibility Project worth $300 million.
