Power Sector Reform: Second Development Policy Credit

Abstract*

This second credit in a programmatic series of two single tranche operations continues IDA’s support for Pakistan’s goal of developing an efficient and consumer-oriented electric power system that meets the needs of its people and economy sustainably and affordably. The operation supports the government’s efforts to make much-needed structural changes to the electric power sector that will improve its financial, technical and commercial performance... Show More

Development Objective

This development policy credit (DPC) focuses on structural reforms to the electric power sector that will improve its financial, technical and commercial performance. The DPC is structured around three objectives: (A) Reducing subsidies and improving tariff policy; (B) Improving sector performance and opening the market to private participation; (C) Ensuring accountability and transparency.

Key Details

Project Details

Project ID
P152021
Status
Closed
Team Leader
Richard Jeremy Spencer
Borrower 2
Ministry of Finance

Country
Pakistan
Disclosure Date
September 30, 2015
Approval Date
(as of board presentation)
November 12, 2015
Effective Date
November 25, 2015

Total Project Cost 1
US$ 500.00 million
Implementing Agency
Ministry of Petroleum and Natural Resources,Oil and Gas Regulatory Authority,National Electric Power Regulatory Authority,Ministry of Finance,Ministry of Water and Power
Region
Middle East, North Africa, Afghanistan, and Pakistan
Fiscal Year 3
2016

Commitment Amount
US$ 500.00 million
Environmental Category
N/A
Environmental and Social Risk
Not Applicable
Closing Date
December 31, 2016

Last Stage Reached
BANK APPROVED
Parent Projects
P128258
Last Update Date
February 28, 2022

Notes
1. Total project cost includes funding from World Bank and non-bank sources in US$ millions. Active and Closed projects show current commitments. Proposed (pipeline) and dropped projects show the forecast amount. The commitment amount for projects in the pipeline is indicative and may be modified during the project preparation.
2. Borrower refers to the Borrower of a Loan or Recipient of a Grant.
3. ”Fiscal Year” is the fiscal year in which the project was approved (or dropped if the status is dropped). The World Bank's fiscal year is from July 1 - June 30. For example, a fiscal year of 1996 corresponds to July 1, 1995 - June 30, 1996.

Sectors

Themes

FY17 - Economic Policy

FY17 - Fiscal Policy19%
- FY17 - Fiscal sustainability19%

FY17 - Private Sector Development

FY17 - Business Enabling Environment62%
- FY17 - Investment and Business Climate50%
- FY17 - Regulation and Competition Policy12%

FY17 - Public Sector Management

FY17 - Public Finance Management19%
- FY17 - Debt Management19%

Project Map

Interactive Map

Finances

Financing Plan (US$ Millions)

Financier	Commitments
IDA Credit	500.00

Total Project Financing (US$ Millions)

Product Line	IBRD/IDA
IBRD Commitment	N/A
IDA Commitment	500.00
IBRD + IDA Commitment	500.00

Lending Instrument
Grant Amount	N/A
Total Project Cost**	500.00

Summary Status of World Bank Financing (US$ Millions) as of June 30, 2025

No data available.

Detailed Financial Activity as of June 30, 2025

Download:

Period	Financier	Transaction Type	Amount (US$)
Oct 1, 2022	IDA-57400	Int Charges	1,624,974.50
Oct 1, 2022	IDA-57400	Int Charges	2,708,290.80
Oct 1, 2022	IDA-57400	Loan Repay	163,876.42
Apr 1, 2023	IDA-57400	Loan Repay	415,629.97
Apr 1, 2023	IDA-57400	Loan Repay	7,490,690.50
Apr 1, 2023	IDA-57400	Int Charges	1,678,296.10
Apr 1, 2023	IDA-57400	Int Charges	1,678,296.10
Apr 1, 2023	IDA-57400	Int Charges	2,797,160.20
Apr 1, 2023	IDA-57400	Int Charges	-0.01
Apr 1, 2023	IDA-57400	Loan Repay	0.01
Oct 1, 2023	IDA-57400	Int Charges	2,685,957.50
Oct 1, 2023	IDA-57400	Loan Repay	0.03
Oct 1, 2023	IDA-57400	Loan Repay	58,078.56
Oct 1, 2023	IDA-57400	Loan Repay	7,670,453.50
Oct 1, 2023	IDA-57400	Int Charges	1,611,574.60
Oct 1, 2023	IDA-57400	Int Charges	1,611,574.60
Apr 1, 2024	IDA-57400	Loan Repay	226,166.62
Apr 1, 2024	IDA-57400	Loan Repay	7,553,498.00
Apr 1, 2024	IDA-57400	Int Charges	1,593,063.10
Apr 1, 2024	IDA-57400	Int Charges	1,593,063.10
Apr 1, 2024	IDA-57400	Int Charges	2,655,105.20
Nov 12, 2015	IDA-57400	Loan Commitment	500,000,000.00
Apr 1, 2021	IDA-57400	Loan Repay	8,316,817.50
Apr 1, 2021	IDA-57400	Int Charges	1,892,250.10
Apr 1, 2021	IDA-57400	Int Charges	1,892,250.10
Apr 1, 2021	IDA-57400	Int Charges	3,153,750.20
Apr 1, 2021	IDA-57400	Loan Repay	9,083.08
Oct 1, 2021	IDA-57400	Loan Repay	204,644.02
Oct 1, 2021	IDA-57400	Loan Repay	8,092,223.00
Oct 1, 2021	IDA-57400	Int Charges	1,854,538.40
Oct 1, 2021	IDA-57400	Int Charges	1,854,538.40
Oct 1, 2021	IDA-57400	Int Charges	3,090,897.20
Apr 1, 2022	IDA-57400	Int Charges	1,782,995.80
Apr 1, 2022	IDA-57400	Int Charges	1,782,995.80
Apr 1, 2022	IDA-57400	Int Charges	2,971,659.50
Apr 1, 2022	IDA-57400	Loan Repay	160,313.20
Apr 1, 2022	IDA-57400	Loan Repay	7,952,594.00
Oct 1, 2022	IDA-57400	Loan Repay	7,358,362.50
Oct 1, 2022	IDA-57400	Int Charges	1,624,974.50
Apr 1, 2019	IDA-57400	Int Charges	3,090,369.00
Apr 1, 2019	IDA-57400	Int Charges	26,073.84
Apr 1, 2019	IDA-57400	Int Charges	26,073.84
Apr 1, 2019	IDA-57400	Int Charges	1,828,147.50
Apr 1, 2019	IDA-57400	Int Charges	1,828,147.50
Oct 1, 2019	IDA-57400	Int Charges	1,782,629.60
Oct 1, 2019	IDA-57400	Int Charges	3,032,197.00
Oct 1, 2019	IDA-57400	Int Charges	36,688.60
Oct 1, 2019	IDA-57400	Int Charges	36,688.60
Oct 1, 2019	IDA-57400	Int Charges	1,782,629.60
Apr 1, 2020	IDA-57400	Int Charges	27,106.83
Apr 1, 2020	IDA-57400	Int Charges	27,106.83
Apr 1, 2020	IDA-57400	Int Charges	1,797,407.50
Apr 1, 2020	IDA-57400	Int Charges	1,797,407.50
Apr 1, 2020	IDA-57400	Int Charges	3,040,857.20
Oct 1, 2020	IDA-57400	Int Charges	1,844,777.60
Oct 1, 2020	IDA-57400	Int Charges	1,844,777.60
Oct 1, 2020	IDA-57400	Int Charges	3,140,170.20
Oct 1, 2020	IDA-57400	Int Charges	39,324.49
Oct 1, 2020	IDA-57400	Int Charges	39,324.49
Oct 1, 2017	IDA-57400	Int Charges	1,865,944.80
Oct 1, 2017	IDA-57400	Int Charges	21,870.68
Oct 1, 2017	IDA-57400	Int Charges	21,870.68
Apr 1, 2018	IDA-57400	Int Charges	5,056.63
Apr 1, 2018	IDA-57400	Int Charges	1,941,993.50
Apr 1, 2018	IDA-57400	Int Charges	1,941,993.50
Apr 1, 2018	IDA-57400	Int Charges	3,236,655.80
Oct 1, 2018	IDA-57400	Int Charges	5,811.73
Oct 1, 2018	IDA-57400	Int Charges	5,811.73
Oct 1, 2018	IDA-57400	Int Charges	1,858,601.40
Oct 1, 2018	IDA-57400	Int Charges	1,858,601.40
Oct 1, 2018	IDA-57400	Int Charges	3,107,355.20
Dec 1, 2015	IDA-57400	Loan Disb	489,390,304.00
Apr 1, 2016	IDA-57400	Int Charges	1,254,830.20
Apr 1, 2016	IDA-57400	Int Charges	1,254,830.20
Apr 1, 2016	IDA-57400	Int Charges	2,017,033.00
Oct 1, 2016	IDA-57400	Int Charges	1,864,453.20
Oct 1, 2016	IDA-57400	Int Charges	1,864,453.20
Oct 1, 2016	IDA-57400	Int Charges	3,107,422.00
Oct 1, 2016	IDA-57400	Int Charges	73,648.00
Apr 1, 2017	IDA-57400	Int Charges	1,808,363.90
Apr 1, 2017	IDA-57400	Int Charges	3,020,687.20
Apr 1, 2017	IDA-57400	Int Charges	4,048.54
Apr 1, 2017	IDA-57400	Int Charges	4,048.54
Apr 1, 2017	IDA-57400	Int Charges	1,808,363.90
Oct 1, 2017	IDA-57400	Int Charges	1,865,944.80
Oct 1, 2017	IDA-57400	Int Charges	3,141,443.50

Footnotes

Ratings

IMPLEMENTATION RATINGS

Name	Review	Date
Progress towards achievement of PDO	Moderately Satisfactory	2016-12-13
Program Management	Moderately Satisfactory	2016-12-13
Monitoring and Evaluation	Satisfactory	2016-12-13
Overall Implementation Progress (IP)	Satisfactory	2016-12-13

COMPLETION RATINGS

INDICATOR	IMPLEMENTATION COMPLETION & RESULTS REPORT: 12-28-2017
Outcomes	Substantial
Risk to Development Outcome	High
Bank Performance	Highly Satisfactory
Borrower Performance	Substantial
Government Performance	Substantial
Implementing Agency	Substantial

INDEPENDENT EVALUATION RATINGS

INDICATOR	ICR REVIEW: 10-11-2018	PROJECT PERFORMANCE ASSESSMENT REPORT:
Outcome Rating	Moderately Satisfactory	N/a
Risk To Development Outcome	High	N/a
Bank Performance	Satisfactory	N/a
Borrower Performance	Satisfactory	N/a
Government Performance	Satisfactory	N/a
Implementing Agency		N/a
Icr Quality	Substantial	N/a
M&e Quality	Substantial	N/a

Results Framework

PROJECT DEVELOPMENT OBJECTIVE INDICATORS

INDICATOR		BASELINE	CURRENT	TARGET

INTERMEDIATE RESULTS INDICATORS

INDICATOR		BASELINE	CURRENT	TARGET

Subsidies allocated in Federal budget (as percentage of GDP) Value 1.80 0.70 0.80
Date June 30, 2013 June 30, 2016 June 30, 2016
Comment
Increased bill collection in Distribution Companies (Collection as a percentage of total billing by DISCOs) Value 86.00 94.60 94.00
Date June 30, 2013 June 30, 2016 June 30, 2016
Comment
Increased gas supply Value 3.8 billion SCFD 3.8 billion SCFD 5 billion SCFD
Date June 30, 2013 June 30, 2016 June 30, 2016
Comment

Separation of market operations and transmission system operations	Value	Market and system operations in single entity (NTD	All contracted power generated by IPPs, GENCOs and	All contracted power generated by IPPs, GENCOs and
	Date	June 30, 2013	June 30, 2016	June 30, 2016
	Comment

Disco performance reports and NEPRA review of performance published Value No Yes Yes
Date June 30, 2013 June 30, 2016 June 30, 2016
Comment

Subsidies allocated in Federal budget (as percentage of GDP)	Value	1.80	0.70	0.80
	Date	June 30, 2013	June 30, 2016	June 30, 2016
	Comment

Increased bill collection in Distribution Companies (Collection as a percentage of total billing by DISCOs)	Value	86.00	94.60	94.00
	Date	June 30, 2013	June 30, 2016	June 30, 2016
	Comment

Increased gas supply	Value	3.8 billion SCFD	3.8 billion SCFD	5 billion SCFD
	Date	June 30, 2013	June 30, 2016	June 30, 2016
	Comment