$787m loan agreements signed between Pakistan and World Bank

ISLAMABAD: Pakistan and World Bank on Tuesday signed $787 million worth of loan agreements for enhancing civic services in the country’s largest city and financing a regional electricity transmission project.

According to a statement issued by the Economic Affairs Division (EAD), Minister for Economic Affairs Muhammad Hammad Azhar oversaw the signing ceremony for five projects costing $787 million with the World Bank.

The loan would be utilised to finance support projects of urban mobility, urban management and service delivery, improving water and sewerage services, tourism and power sectors according to the statement released. An agreement of $382 million was signed for the Karachi Mobility Yellow Line project. The project aims to enhance mobility, accessibility, and safety along the Yellow Line Bus Rapid Transit (BRT) corridor in Karachi.

An agreement worth $40 million was also inked for the Karachi Water and Sewerage Services Improvement Project. The project aims to improve access to safe water services in Karachi while boosting financial and operational performance of Karachi Water and Sewerage Board (KWSB).

The third loan agreement worth $230 million was signed for the Competitive and Liveable City of Karachi project. The project aims to improve the operational capabilities of Karachi local councils and agencies in urban management, financing and service delivery and provide a conducive business environment for private sector development in Karachi.

A project aimed at improving tourism by enhancing tourism-enabling infrastructure, developing tourism assets and strengthening management for sustainable tourism development in Khyber-Pakhtunkhwa was also signed. The project named ‘Khyber-Pakhtunkhwa Integrated Tourism Development’ is worth $70 million.

A provision of additional financing of $65 million for the Central Asia-South Asia Electricity Transmission and Trade (Casa-1000) project is also being given by the World Bank. The project aims to create conditions for sustainable trade in 1,300 megawatts of electricity between Central Asian countries and South Asian states.

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