The World Bank has announced to fund two hydropower projects of 245 megawatts in Swat with an estimated cost of $450 million. The projects include 135 megawatts of Madain and 88 megawatts of Gabral hydropower plants. These power projects will generate Rs 13 billion in revenue annually and become a source of attraction for foreign investment in the energy sector and create job opportunities for the people.
These hydropower plants include the construction of dams which play an important role in the hydroelectric and agricultural sectors of a country. Approximately 50% of the population of Pakistan lives without access to electricity. Overall, Pakistan is struggling with a large gap between power supply and demand due to low investment in power generation, power theft, insufficient collection rates, and technical losses. Water scarcity in Pakistan is a national security issue causing economic disaster and famine. This project is expected to enhance the long-term financial viability of the power sector and create a food security buffer and provide clean drinking water.
Pakistan has been a member of the World Bank since 1950. Since then, the Bank has provided $40 billion in assistance. The World Bank has prepared a five-year support program for Pakistan, the Country Partnership Framework (CPF) for 2022-2026, that focuses on four developmental sectors, energy, private sector development, inclusion, and service delivery.