World Bank Supports Pakistan's Energy Sector Reforms

The World Bank has pledged its support to Pakistan in implementing structural reforms to transition towards a more cost-effective energy mix. This commitment was solidified during a meeting between Federal Minister for Power Awais Leghari, Federal Minister for Petroleum Dr Musadik Malik, and Martin Raiser, the South Asia Regional Vice President of the World Bank. Discussions revolved around reform agendas and the technical assistance that the World Bank will provide to Pakistan, particularly in the energy sector.

Dr Musadik Malik expressed appreciation for the World Bank's ongoing assistance in energy sector reforms, emphasizing the significance of technical support in governance models. One of the reform initiatives highlighted by the Petroleum Minister was the separation of tariffs for different income groups in the gas sector.

The collaboration with the World Bank is geared towards enhancing efficiency and service delivery in the power sector. The focus will be on privatizing DISCOs (Distribution Companies) and improving the transmission and distribution network. To address these challenges, a joint working group will be established.

Martin Raiser underscored energy as a pivotal area of engagement for the World Bank in Pakistan. He reiterated the commitment to supporting structural reforms that will facilitate a transition to a low-cost energy mix. The interconnection between the gas and power sectors was also highlighted as crucial in tackling the issue of circular debt.

In conclusion, the partnership between Pakistan and the World Bank signifies a step towards sustainable energy practices and improved governance in the energy sector. The collaborative efforts aim to drive economic growth and enhance the overall energy landscape of Pakistan.