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World Bank Presses Pakistan for Power Reforms Before Major Funding

The lender ties any large new financing to verifiable power-sector changes under a results-based framework.

Overview

  • Finance Minister Muhammad Aurangzeb and World Bank Country Director Bolormaa Amgaabazar met in Islamabad to review the Country Partnership Framework and align next steps.
  • The World Bank proposed a results-driven program with clear milestones, performance indicators, and targeted technical assistance to spur private investment.
  • Pakistani officials said they asked the Bank to refinance costly power-sector debt by shifting it to cheaper multilateral borrowing.
  • Officials also said the government plans to raise the industrial incremental electricity package to 50% from 25% to help revive demand after last year’s downturn.
  • The Bank outlined potential policy-based guarantees for liability management and signaled that major support depends on concrete power-sector reforms and continued technical work.