
Wolrd Bank approves $55m in additional financing to Discos
'The delegate authority of the Board of Executive Directors of the World Bank has approved, on June 27,2025, the International Development Association (IDA) additional financing in the amount of $55 million to the Islamic Republic of Pakistan for the Electricity Distribution Efficiency Improvement Project,' the sources quoted WB as saying in a letter to Economic Affairs Division.
Technical discussions were held on June 18, 2205 at the World Bank's Islamabad office. The additional financing aims to further enhance the operational and financial performance of the Hyderabad Electric Supply Company (HESCO) and Peshawar Electric Supply Company (PESCO) through the scaled deployment of Asset Performance Management Systems (APMS).
World Bank may give extra $50m financing to Discos
Both HESCO and PESCO, currently among the poorest-performing Discos, have not been slated for privatisation so far.
The additional financing is fully aligned with the project's development objectives, which include improving operational efficiency in targeted areas of selected distribution companies, supporting progress on the power sector reform agenda, and advancing the Country Partnership Framework (CPF) between the Government of Pakistan and the World Bank.
During negotiations, discussions covered the draft Financing Agreement between the Government of Pakistan (the Recipient) and the World Bank (the Association), the draft Project Agreements with HESCO and PESCO (the Project Implementing Entities), the draft Project Paper (PP), the Disbursement and Financial Information Letter (DFIL), and the Environmental and Social Commitment Plan (ESCP).
In line with the World Bank's Access to Information Policy, once a project is approved by the Country Director for financing, the Association publicly discloses the PP, legal agreements, and other relevant documentation. The Association may also release the PP upon its distribution to the Board, subject to the Recipient's consent.
Discos will share data contained in the PP that may be confidential or sensitive and could potentially impact the relationship between the World Bank and the Government of Pakistan. Suggested revisions to the PP's wording were discussed to resolve any issues related to its release.
Copyright Business Recorder, 2025
Hashtags

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles


Business Recorder
an hour ago
- Business Recorder
Leghari tells World Bank delegation: CTBCM to enter final phase in two months
ISLAMABAD: Federal Minister for Power, Sardar Awais Ahmad Khan Leghari, has announced that the Competitive Trading Bilateral Contract Market (CTBCM) will enter its final implementation phase within the next two months. The Minister made this statement during a meeting with a high-level World Bank delegation, led by Ousmane Dione, the Regional Vice President for the Middle East, North Africa, Afghanistan, and Pakistan. The Power Division had earlier informed representatives of nearly a dozen development partners that the commercial operations of CTBCM are expected to begin by the end of September 2025. CTBCM: Commercial operations may begin by Sept-end The long-awaited policy will allow Bulk Power Consumers (BPCs) — those with a demand of 1MW or more — to procure electricity through independent bilateral contracts with competitive suppliers, sources told Business Recorder. According to the Power Division, the framework for viable open access charges (wheeling) and a transparent mechanism for allocating wheeling quantum are in the final stages of development. The operationalization of the Independent System and Market Operator (ISMO) will play a critical role in facilitating CTBCM implementation. Minister Leghari explained that CTBCM will enable free trade of electricity within the market. Under this model, wheeling charges and other mechanisms are being introduced, while the government's role will be confined to regulation. He emphasized that the transition will be gradual, guided by a comprehensive strategy to ensure system stability. During the meeting, Leghari provided the World Bank delegation with a detailed briefing on Pakistan's energy reforms, including the net metering policy, privatization efforts, regulatory enhancements, and investment opportunities. He underscored that Pakistan's policy direction is clearly focused on encouraging private sector participation and enhancing transparency, with an open invitation to international investors to join this transformation. Ousmane Dione welcomed the energy sector reforms and highlighted the critical role of energy in national development. He reaffirmed the World Bank's continued support for Pakistan, emphasizing its commitment to fostering a sustainable, reliable, and investment-friendly energy system. The Federal Minister also presented the delegation with a comprehensive booklet detailing ongoing reforms in the energy sector and expressed optimism that the partnership between Pakistan and the World Bank would continue to strengthen. Copyright Business Recorder, 2025


Business Recorder
an hour ago
- Business Recorder
PM tells World Bank delegation: India's IWT actions threaten key global pacts
ISLAMABAD: Prime Minister Shehbaz Sharif on Thursday slammed India's unilateral and unlawful actions affecting the Indus Waters Treaty (IWT), warning that they pose a serious threat to key international agreements. In a meeting with Ousmane Dione, Vice President of the World Bank for MENAAP, Prime Minister Shehbaz Sharif welcomed what he described as the bank's 'principled' support for Pakistan's position on the water dispute with India. He reiterated Islamabad's demand for adherence to international law, portraying India's conduct as reckless and destabilising. 'We will not compromise on our water rights or regional stability,' said Sharif, calling for dialogue but emphasising the need for justice. Sharif offered strong praise to the World Bank for its longstanding partnership, specifically thanking Bank President Ajay Banga and former Pakistan Country Director Najy Benhassine for advancing the new Country Partnership Framework (CPF). The CPF, he noted, focuses on critical sectors such as energy, climate change, governance, and human capital – areas in which Pakistan is seeking urgent transformation. He also highlighted the World Bank's 'decisive' role during the catastrophic 2022 floods, which displaced millions. The bank's emergency funding, he said, was essential in kick-starting relief and reconstruction efforts. In a carefully worded response, Dione commended Sharif's reform agenda and acknowledged Pakistan's fragile yet ongoing macroeconomic recovery. He credited Sharif's government with restoring investor confidence and steering the country towards more inclusive growth. Both sides concluded the meeting with commitments to expand cooperation, with Dione describing the partnership as 'strategic' and long-term. But beneath the diplomatic formalities, Pakistan's message remained unambiguous: it will not remain silent while regional water security is put at risk. Copyright Business Recorder, 2025


Express Tribune
15 hours ago
- Express Tribune
PM Shehbaz hails World Bank position on IWT
Prime Minister Shehbaz Sharif on Thursday praised the World Bank for its support of Pakistan's position on the Indus Waters Treaty, criticising India's 'unilateral and illegal' actions that he said undermine the landmark agreement. Tensions between India and Pakistan escalated after the April 22 attack in Pahalgam, Indian Illegally Occupied Jammu and Kashmir (IIOJK), which killed 26 people. India blamed Pakistan for the attack but provided no evidence. Islamabad strongly denied the allegations. On April 23, India closed the Wagah border crossing, revoked Pakistani visas, and announced the suspension of the Indus Waters Treaty. Pakistan condemned the move as an 'act of war' and responded by sealing the Wagah border from its side. In a meeting with Ousmane Dione, World Bank Regional Vice President for the Middle East, North Africa, Afghanistan, and Pakistan, Shehbaz reiterated Pakistan's commitment to upholding international law, pursuing peaceful dialogue, and promoting regional prosperity. Regional Vice President of the World Bank Ousmane Dione called on Prime Minister Muhammad Shehbaz Sharif. — Government of Pakistan (@GovtofPakistan) July 24, 2025 The prime minister expressed appreciation for the World Bank's longstanding partnership and described its backing as aligned with Pakistan's lawful stance on water rights under the treaty. Shehbaz also acknowledged the strategic role of the Country Partnership Framework in supporting Pakistan's national priorities, particularly in the areas of energy, climate change, human development, and governance reform. Read: World Bank approves $194m for education, water security in Balochistan He thanked the Bank for its timely assistance during the 2022 floods, which enabled Pakistan to launch emergency relief and rehabilitation efforts for affected communities. Dione reaffirmed the World Bank's commitment to expanding collaboration with Pakistan and lauded the government's reform agenda aimed at ensuring macroeconomic stability and long-term sustainability. Both sides expressed a shared resolve to deepen cooperation in the coming years to accelerate development and improve livelihoods. Earlier, the World Bank reaffirmed its support for Pakistan's economic stability during a separate meeting held on Wednesday between Federal Minister for Economic Affairs Ahad Cheema and Ousmane Dione at the Ministry of Economic Affairs in Islamabad. According to an official statement from the Ministry of Economic Affairs, the Bank appreciated Pakistan's reform efforts and progress under the Country Partnership Framework. Both sides discussed avenues for deepening cooperation in critical sectors, with an emphasis on ensuring sustained recovery and long-term financial resilience.