In a major step for Pakistan’s energy sector, the World Bank approves $55 million funding for DISCOs to fix critical gaps in power distribution. This funding is part of the Electricity Distribution Efficiency Improvement Project. The Board of Executive Directors cleared the new amount on June 27, 2025.
Earlier this month, technical teams met on June 18 at the World Bank’s Islamabad office. They discussed how to use the funds effectively. As a result, the extra money will help reduce losses, upgrade grids, and support broader power reforms under the Country Partnership Framework.
Importantly, Hyderabad Electric Supply Company (HESCO) and Peshawar Electric Supply Company (PESCO) will benefit the most. Both face old infrastructure and frequent line losses. Although the government has not included HESCO and PESCO in privatization plans yet, these companies are a main focus for performance improvements.
During talks, officials reviewed draft agreements between Pakistan and the World Bank. They covered the Financing Agreement, Project Agreements for HESCO and PESCO, the Project Paper, financial details, and the Environmental and Social Commitment Plan. Once the government signs off, all documents will be released to the public under the World Bank’s Access to Information Policy.
Meanwhile, experts see this fresh funding as a positive signal. They believe that modern grids and better management will help cut theft and improve bill recovery. Furthermore, smoother operations mean more reliable power for homes and industries.
The World Bank’s $55 million funding for DISCOs will also support staff training and new metering systems. Therefore, the government hopes these steps will ease circular debt issues and build confidence among investors.
In addition, the funding shows Pakistan’s commitment to solving deep-rooted problems in its power network. Better service delivery can encourage more international partners to invest in the sector.
For now, the focus remains on using the money wisely. If managed well, this project could bring stable power supply to thousands of people.
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