Islamabad: The World Bank (WB) on Monday (November 7) agreed to provide Pakistan with USD 3 billion in loans for the energy infrastructure development schemes, news sources reported.
The funds will be offered on a long-term basis and will be spent on the development, upgrade, and rehabilitation of the old energy infrastructure. Moreover, the funds will also support the energy transformation mix from fuel to green energy. The news was shared by the Power Division in a statement following a meeting of WB officials with Minister for Energy Khurram Dastgir. The statement highlighted that the international lender will also provide assistance in the Dasu Hydropower Project. The bank will also assist in energy efficiency and conservation programs, apart from helping provinces install solar projects.
The minister also highlighted the negative impact of climate change on energy infrastructure and the need for a change in strategies. He said that the country is gripped with obsolete energy transfer mechanisms that have hampered its growth over the years. He also updated WB officials on the Central Asia-South Asia (CASA) 1,000 power project.
It is important to mention that Pakistan is in a serious energy crunch following an international fuel price hike. The government has been unable to manage the required RNLG and LNG cargoes to meet winter demand for domestic and industrial needs.