- WB official Illangovan says DPC-II to help govt implement key reforms for efficient, consumer-oriented power system
The World Bank has approved the second Development Policy Credit (DPC-II) worth $500 million to support Pakistan’s energy reforms.
According to a statement released by the World Bank, this operation focuses on structural reforms to the power sector that will improve its financial, technical and commercial performance.
The first operation that was approved in May last year reflected prior actions taken by the government to support the most pressing needs to stabilise the sector, while the second operation in the series works towards longer term structural reforms that are aimed at restoring viability of the power sector.
“This operation will further support Pakistan’s efforts in overcoming the energy crisis. It supports the Pakistan government to implement key reforms towards an efficient and consumer-oriented electric power system,” said Patchamuthu Illangovan, World Bank’s Country Director for Pakistan.
The DPC-II focuses particularly on policy and institutional actions that will improve financial viability and thus reduce the burden of public financing for the sector. The programmatic operation is structured around three objectives: firstly to reduce general subsidies and improve the tariff policy; secondly to improve sector performance and open the market to private participation; and thirdly to ensure accountability and transparency.
Leading energy specialist, Richard Spencer, said, “This second operation builds on the achievements of the first. The reforms undertaken by the government will have marked economic impacts by bringing better governance and regulation to the sector.”
