The World Bank’s Board of Executive Directors has approved a huge amount of $800 million for development in power sector and human developments programs.
According to the report these funds will be utilized in finance the Pakistan Program for Affordable and Clean Energy (PACE) and the Second Securing Human Investments to Foster Transformation, read a statement.
As per the Business Recorder report, $400 million for PACE focuses on measures to improve financial viability of the power sector and support the country’s transition to low-carbon energy. The goal of the program is to reduce circular debt over the long-term.
“Power sector reforms are critical to resolving Pakistan’s fiscal challenges,” said Rikard Liden, World Bank Task Team Leader for the PACE program. “Decarbonizing the energy mix will reduce the dependence on fossil fuel imports and vulnerability to price fluctuations because of movement in exchange rates. PACE prioritizes action on such reforms, which must be sustained to address circular debt and set the power sector on a sustainable path.”
On the other hand, $400 million will be utilized for the Second Securing Human Investments to Foster Transformation program (SHIFT II), which focuses on improving health and education services, increase income-generation opportunities for the poor, and promote inclusive economic growth.
