World Bank Approves Debt For Two Programs in Pakistan
The two initiatives include Programs for Affordable and Clean Energy (PACE) and Securing Human Investments to Foster Transformation (SHIFT II)
World Bank has approved a debt of $800 million to finance two programs in Pakistan focusing energy sector and human investment.
As per a press release, the two initiatives include Programme for Affordable and Clean Energy (PACE) and Securing Human Investments to Foster Transformation (SHIFT II).
The loan of $400 million was approved by World Bank for PACE after Pakistan accepted at least six prior conditions like ensuring reduction in power generation cost, competitive bidding for new projects, reduction in circular debt, and shifting to clean energy.
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The statement by World Bank holds that the PACE loan will benefit the power sector and support the country’s transition to low-carbon energy.
“PACE prioritizes 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 statement said.
On the other hand, the other $400 million will support strengthening basic service delivery for human capital accumulation.
The program will focus on the health and education sector, job opportunities for the poor, and economic growth.
The SHIFT-II program will also encourage women’s inclusion in income generation by improving working conditions and empowering them.
“It supports the enhancement of national safety nets programs and better targeting to protect the most vulnerable, building resilience to shocks like the Covid-19 pandemic”, the statement said.
