Loan-funded projects

Letter February 06, 2023
Loan-funded projects

KARACHI:

International institutions like World Bank, Asian Development Bank and International Monetary Fund have initiated and funded many projects through loans to alleviate the load-shedding problem in Pakistan. However, 15 years later, Pakistanis continue to face regular power outages. If anything, the loan-funded projects have only added to Pakistan’s debt.

All projects have focused on increasing electricity production but have failed to increase electricity transmission. World Bank’s $195 million loan-funded project aimed to reduce line losses and improve efficiency. However, the target was not achieved because the root cause of the problem is excess electricity production and not line losses. These projects are a waste of resources and time because they fail to tackle the actual problem. Government officials cannot be held responsible for the inefficiencies in these projects as they have little say in the design and management of the projects.

The Pakistani government must urge international organisations to stop funding these projects and instead ensure that local stakeholders including policymakers and organisations are included in future projects to improve their effectiveness. The onus for resolving the load-shedding crisis lies upon the Pakistani government and NEPRA. Hours-long power outages have haunted citizens for years. Therefore, it is about time NEPRA assumes responsibility and begins addressing issues regarding electricity production and transmission to reduce load shedding.

Shahryar Khan

Peshawar

Published in The Express Tribune, February 5th, 2023.

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