World Bank approves $1b loan for Pakistan

World Bank approves $1b loan for Pakistan

Officials of the World Bank say that the Dasu Hydro project will prove to be a game changer for Pakistan

In a significant financial boost, the World Bank has approved a $1 billion loan for Pakistan, specifically earmarked for the Dasu Hydropower Project. This substantial funding will be allocated to Phase One of the project, aiming to enhance the country’s power supply.

World Bank officials have highlighted the transformative potential of the Dasu project, predicting it will generate between 4320 to 5400 MW of electricity. They emphasized that the resulting cheap electricity will be a major advantage for Pakistan’s energy sector. The World Bank has described the Dasu Hydropower Project as a “game changer” for the nation.

According to a spokesperson from the Water and Power Development Authority (WAPDA), the World Bank is already involved in the Dasu Dam project, providing a previous loan of $588 million. The new $1 billion loan complements this, along with an additional $460 million credit guarantee from the World Bank for the project.

The WAPDA spokesperson further elaborated on the broader scope of their work, stating that WAPDA is currently overseeing the construction of eight major projects, including the Dasu Dam, with a total investment of $26 billion. These projects are set to be completed in phases over the next five years, supported by an integrated financial strategy.

Upon completion, these initiatives are expected to significantly boost Pakistan’s water storage capacity by 9.7 million acre-feet and double WAPDA’s hydropower production to 20,000 megawatts, marking a substantial leap in the country’s energy infrastructure.

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