World Bank loan to boost Pakistan power supply

The World Bank on Tuesday approved a $256.85 million line of credit for Pakistan to improve the reliability and efficiency of power supply in a country where poor electricity service is a major constraint to economic growth.

The World Bank estimates that Pakistan's electricity system lacks about 2,000 megawatts to cover peak demand. The country's transmission and distribution power networks are over-loaded and lack proper investment, with high technical and commercial losses.

The so-called Electricity Distribution and Transmission Improvement project aims to improve distribution and transmission networks to meet increasing demand for electricity and to strengthen capacity of electricity companies.

"While Pakistan has added about 1 million new, mainly household, electricity connections each year, about a quarter of its population still has no access to electricity, and the quality of service has been deteriorating sharply, " said Yusupha Crookes, World Bank country director for Pakistan.

"This has an adverse impact on both the normal conduct of social and economic activity and the delivery of social services."