ISLAMABAD: Pakistan is seeking further technical and financial support from the World Bank to address major energy sector challenges, including over Rs5.5 trillion circular debt and 15pc to 30pc gas and electricity losses, as well as the privatisation programme.

In this regard, Ministers for Petroleum Dr Musadik Malik and Minister for Power Awais Leghari had a joint meeting with the World Bank’s Regional Vice President for South Asia Martin Raiser, here on Monday.

The Pakistani side also advocated for World Bank financing and technical support for building water reservoirs, particularly on the river Indus, to minimise the challenges posed by climate change instead of spending billions of rupees on recovery and rehabilitation of damages caused by floods and droughts, almost on an annual basis.

“How long can the government of Pakistan and international development partners finance perpetual losses caused by floods?” Power Minister Leghari was quoted as telling the World Bank delegation, which also included Country Director Naji Benhussaine and Regional Chief of International Finance Corporation, Zeeshan Shaikh.

Pakistan seeks financing to build water reservoirs for climate resilience

“We need to get out of this cycle and invest in sustainable solutions,” he said.

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An official statement said both sides exchanged ideas regarding the reform agenda and discussed in detail the support the World Bank is providing to Pakistan in the form of technical assistance.

Petroleum Minister Dr Malik told the delegation that Pakistan had, with World Bank support, introduced smart meters in the service areas of Sui Southern Gas Company Limited (SSGCL) and would like to have a similar project implemented in the jurisdiction of Sui Northern Gas Pipelines Limited (SNGPL) with the financial and technical support of the bank.

However, the minister emphasised that Pakistan would like to address flaws in the smart metering project of SSGCL and impediments in the loss reduction programme. He also suggested that while the government was working on privatisation or other modes of private sector participation in distribution companies of the power sector as well as gas companies, the World Bank should help conduct a study on the model of private sector induction and the policy framework for the future with a clear roadmap.

Published in Dawn, May 7th, 2024