During a meeting on 29th June, 2021 World Bank Board of Directors voted to approve the budget of $800 million for making clean energy affordable. In Pakistan, the $40 million affordable and clean energy program (PACE) aims at improving the power sector’s financial viability and supporting the switch to low-carbon energy.
“Power sector reforms are critical to resolving Pakistan’s fiscal challenges,” said Rikard Liden, Pace’s task team leader. The aim behind this initiative is to improve energy efficiency in the power sector and financially assist the private sector.
“Decarbonising the energy mix will reduce the dependence on fossil fuel imports and vulnerability to price fluctuations because of movement in exchange rates. Pace prioritises action on such reforms, which must be sustained to address circular debt and set the power sector on a sustainable path.”
“The reforms underpinning Pace and Shift can contribute to facilitating sustainable investments and generate welfare gains for those most in need,” said World Bank Country Director for Pakistan Najy Benhassine.
A major source of funding and expertise for developing countries, the World Bank is taking broad measures to help strengthen countries’ pandemic preparedness and response.