The World Bank’s (WB) board of executive directors approved $800 million in funding for two Pakistani programmes on Tuesday.
The Pakistan Programme for Affordable and Clean Energy (PACE) and the Second Securing Human Investments to Foster Transformation, according to a press release, are among the programmes (SHIFT II).
The changes underpinning the two programmes, according to WB Country Director for Pakistan Najy Benhassine, can help to facilitate sustainable investments and deliver welfare advantages for people who are most in need.
“With the engagement of the private sector, PACE prioritizes steps needed to launch important power sector changes focused on reducing power generation costs, better targeting of subsidies and tariffs for customers, and enhancing efficiencies in energy distribution,” the statement stated.
Additional medium-term changes are being developed, with a focus on subsidies, competitiveness, and the long-term viability of the power sector. “The long-term goal is to reduce circular debt,” according to the news release.
Rikard Liden, the program’s WB task team leader, emphasized that reforming the power industry was vital to resolving the country’s economic problems.
Meanwhile, a federal framework to boost basic service delivery for human capital accumulation is supported by the second $400 million.
According to the statement, “the programme will help improve health and education services, increase income creation opportunities for the underprivileged, and encourage inclusive economic growth.”