WB announces $55m in additional funding

Federal Minister for Power Sardar Awais Ahmad Khan Leghari met with a delegation led by Anna Bjerde, Managing Director Operations of the World Bank, to discuss Pakistan's ongoing power sector reforms.

According to a press statement issued on Thursday, the minister shared plans to launch a competitive electricity market soon, noting that preparatory work is underway. An Independent System and Market Operator (ISMO) has been established, and experienced professionals are being appointed. The government will no longer be the sole electricity purchaser.

Leghari highlighted improved revenue recovery and stressed the importance of targeted subsidies.  He requested World Bank support in developing such mechanisms. Bjerde backed the approach, affirming full support for better-targeted subsidies.

Pakistan currently has a surplus of around 7,000 megawatts of electricity. Leghari suggested supplying this to industries at marginal rates, which would make it the cheapest industrial electricity in the region. Bjerde agreed that using surplus power is better than letting it go to waste.

World Bank Country Director Najy Benhassine praised the reforms and announced $55 million in additional funding.