World Bank approves $108mn additional financing for KP projects
'By rehabilitating critical rural road infrastructure and enhancing disaster preparedness, the Khyber Pakhtunkhwa Rural Accessibility Project and the Khyber Pakhtunkhwa Integrated Tourism Development Project are not only improving access to essential services like health and education, but also fostering climate, economic resilience and creating job opportunities for local communities,' said Najy Benhassine, World Bank Country Director for Pakistan, in a statement on Tuesday.
IMF-World Bank meetings end with little tariff clarity, but economic foreboding
The $78 million in additional financing for the Khyber Pakhtunkhwa Rural Accessibility Project (KPRAP) will focus on providing safe and climate resilient road infrastructure, by upgrading and rehabilitating rural roads, thereby improving access to services including schools, health facilities, and markets.
The project is also supporting safe and affordable transport to school for girls. Overall, around 1.76 million people are expected to benefit from the project.
'This additional financing underscores the World Bank's commitment to supporting Pakistan's and Khyber Pakhtunkhwa Province's development goals,' said Muhammad Bilal Paracha, Task Team Leader for the project. 'The project is crucial for improving the lives of people in the province, particularly women and girls, by enhancing access to essential services and economic opportunities.'
The $30 million in additional financing for the Khyber Pakhtunkhwa Integrated Tourism Development Project (KITE) is expected to help enhance the province's tourism sector by completing the rehabilitation of two roads that will improve access to the province's pristine tourist spots in the vicinity.
Pakistan: World Bank likely to extend CD for CASA-1000
It will also support technical assistance and capacity building for the tourism industry and public sector stakeholders. The additional financing will support better destination management, heritage conservation, and the integration of digital platforms in Khyber Pakhtunkhwa's tourism industry.
'The KITE project is encouraging responsible tourism in Khyber Pakhtunkhwa in collaboration with public and private sector stakeholders,' said Kiran Afzal, Task Team Leader for the project. 'This means better roads, improved tourist facilities, and more opportunities for local communities to benefit from the growth of the tourism economy. The project will create jobs, train local people, and preserve the country's rich cultural heritage.'
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Express Tribune
8 hours ago
- Express Tribune
Civil servants required to declare assets
Any person who files tax return after the end of due dates would be treated as a late filer and separate rates on the purchase or disposal of immovable property would apply to him. photo: AFP The federal government has fulfilled another key condition of the International Monetary Fund (IMF) by making the assets of public officials public. Now government officers from Grade 17 and above will be required to file their own and their family's assets digitally. With the president's approval, the Civil Servants (Amendment) Act 2025 has been issued via gazette notification. The Establishment Division has also forwarded the notification to all federal ministries and divisions. A new Section 15-A has been added to the Civil Servants Act 1973, which states that the details of government officials' assets will be made public through the Federal Board of Revenue. Officers will be required to disclose their domestic and foreign assets as well as their financial standing. The confidentiality of any officer's personal information will be maintained. Earlier this week, the government imposed new taxes on the public in line with IMF conditions. It has introduced a petroleum climate support levy with an additional climate levy of Rs2.50 per liter on petrol, diesel, and kerosene.
Business Recorder
10 hours ago
- Business Recorder
$300m SWAT project progress unsatisfactory: World Bank
ISLAMABAD: The World Bank has rated the overall implementation progress of 'Sindh Water and Agriculture Transformation (SWAT)' project worth around $300 million moderately unsatisfactory which envisaged to increase agricultural water productivity in selected farmers' organization command areas, improve integrated water resources management, and contribute to restoring crop production by small and medium-sized farmers affected by the 2022 floods. The Bank in its Implementation Status and Results Report (ISR) also termed the progress toward achievement of project development objective moderately satisfactory. The project was approved in December 2022 with the development objective to increase agricultural water productivity in selected farmers' organization command areas, improve integrated water resources management, and contribute to restoring crop production by small and medium-sized farmers affected by the 2022 floods. Sindh takes significant stride towards water sustainability Official documents revealed that the project continues to advance implementation on several fronts, although experiencing some delays. Water Resources: The design of the Hydro-Agro Informatics program under the auspices of the Irrigation Department and the Agriculture Department is underway. After the design is completed, implementation of key activities will start in 2026. A first draft water resources bill has been prepared and is being reviewed by the Irrigation Department. The Sindh Law and Parliamentary Affairs Department submits a draft water resources bill for consideration by the Sindh Provincial Assembly that replaces the Irrigation Act (1879) and the Sindh Water Management Ordinance (2002) to create a unified legal framework for IWRM and irrigation services. Further the Sindh Irrigation Department undertakes a water pricing reform study, and increases Abiana rates after due consideration of study recommendations. The Water Pricing Study will be informed by the ongoing Federal Water Pricing Study. Farmer Organization (FOs) Sub-Projects: The Irrigation Department and the Agriculture Department are working with three pilot FOs to formulate area development plans (ADP) which will identify priority investments in irrigation and agriculture. Akram Wah Rehabilitation sub-project procurement activities are underway with contract award expected in early 2026. The Agriculture Department has advanced work related to crop reporting, soil salinity management, value chain development. Discussions on wheat monitoring and agriculture research policy are underway. Flood Emergency Response (FERC) payments are expected to conclude later in 2025. Project documents noted that Area Development Plans (ADP) for the three pilot FOs are under preparation. Subproject assessment reports will evaluate the change in agricultural surface water productivity (crop revenue divided by total volume of surface water supplied in PKR/m3) attributable to the project. Copyright Business Recorder, 2025
Express Tribune
a day ago
- Express Tribune
Donors for power tariff cut sought
Listen to article The government on Friday pitched a new package before foreign donors for up to Rs10.5 per unit reduction in prices on additional use of electricity by industrial and agricultural sector consumers to boost demand, which had dipped by one-fifth due to unaffordable prices. The Minister for Power, Sardar Awais Laghari, shared the broader contours of the Industrial Support Package (2026-28) with over a dozen representatives of international development organisations to seek their diplomatic support to reduce prices. The package appeared to be gaining traction with lenders, but their observations centred on the sustainability of the increase in demand and the viability of the national grid electricity. They raised concerns about relying solely on price signals to boost dwindling electricity demand instead of implementing comprehensive reforms in the energy sector, which include ensuring the reliability of the national grid power. The response of the power minister was awaited until the time of filing this story. Government officials stated that the Power Division had informed foreign donors it wanted to introduce a support package for a period of three years (2026-28) and was counting on their support. Among the participants were the World Bank, the Asian Development Bank (ADB), and other regional and international development organisations. According to the proposal, the government wants to reduce the current average electricity price of Rs33.5 per unit by Rs10.5, but only on the incremental use of electricity. It has proposed that industrial connection rates will be set at Rs22.98 per unit. For the agricultural sector, the rate will be the same, but the benefits will be Rs7.77 per unit due to the current Rs30.75 per unit price. Foreign diplomats were informed that the price reduction would only apply to additional electricity use compared to consumption from December 2023 to November 2024. In cases where no reference consumption is available, the higher consumption of the relevant month or the sanctioned load will be used for comparison. The government claimed that the new package would be a subsidy and cost-neutral, and should neutralise any opposition from the International Monetary Fund (IMF) this time. The IMF had rejected a similar package last year due to its implications for other consumers. According to the proposal, the Rs3.23 per unit debt servicing surcharge and the quarterly tariff adjustment will not apply to the industrial support package. However, this exclusion could hurt residential consumers, whose debt servicing surcharge may increase further to raise sufficient funds to retire the Rs1.2 trillion debt acquired from banks to address circular debt. A government functionary noted an element of discrimination, as large numbers of consumers in Sindh might shift to the national grid due to high gas prices, making them eligible for incremental benefits compared to Punjab-based industries that already rely heavily on the national grid. Due to unaffordability, industrial consumers are increasingly moving away from the national electricity grid. Industrial electricity demand dropped by 20% over the past two years. Consequently, the number of net-metered industrial consumers surged to nearly 6,900 in fiscal year 2024, compared to just 1,570 in 2022. Electricity tariffs for industrial consumers in Pakistan are among the highest in the region. Compared to about US16 cents per unit locally, electricity costs US9 cents in India and US10 cents in Bangladesh, Pakistan's two biggest competitors in global markets. However, concerns remain about the sustainability of the package and whether such price reductions can be beneficial without addressing the underlying issues in the power sector. Foreign diplomats were briefed on reforms the government is undertaking. One participant told The Express Tribune that, upon inquiry, it appeared all such initiatives were falling behind extended deadlines. The competitive market is not yet operational, and the government told participants it may become operational in September. Disputes over wheeling charges persist, and the revised Integrated Generation Capacity Expansion Plan is also facing delays. The privatisation of power distribution companies has not been accelerated, and the government remains unwilling to end the uniform electricity price policy, which penalises Punjab-based consumers for theft in other provinces. A major lender inquired about the excess generation capacity claim, questioning whether the system can generate power equal to the installed capacity and if the transmission system can handle the full load. Sources said there were also concerns about the viability of increased demand once the package ends. Evidence from similar industrial support packages in the past showed that demand spikes were typically modest and did not result in sustained grid dependence. Sources added that potential risks exist that the actual costs of this package might exceed the proposed marginal rate, particularly during the summer season. One major view was that any effort to restore industrial demand through a support package should be made under a broader framework that balances both price and non-price elements. Implementation risks, grid reliability, and service quality remain critical blind spots that could limit the package's success. Donors advised the government to restore industrial demand on the grid through a combination of reliable service delivery and sector-wide planning, rather than relying on reactive short-term measures.
