The World Bank’s Board of Executive Directors on Tuesday approved $800 million worth of loans for two programmes in Pakistan—the Pakistan Program for Affordable and Clean Energy (PACE) and the Second Securing Human Investments to Foster Transformation (SHIFT II).
According to a report by a local media outlet, the $400 million PACE initiative focuses on measures to improve the financial viability of the power sector and support the country’s transition to low-carbon energy.
It prioritises actions needed to initiate critical power sector reforms focused on: reducing power generation costs, better targeting of subsidies and tariffs for consumers, and improving efficiencies in electricity distribution with the participation of the private sector.
The programme will help improve health and education services, increase income-generation opportunities for the poor, and promote inclusive economic growth.
The programme supports reforms to encourage women’s participation in the economy by improving working conditions and empowering those in the informal sector. It supports the enhancement of national safety net programmes and better targeting to protect the most vulnerable, building resilience to shocks like the COVID-19 pandemic.
“The reforms underpinning PACE and SHIFT can contribute to facilitating sustainable investments and generate welfare gains for those most in need,” said Najy Benhassine, World Bank Country Director for Pakistan.
