Pakistan will get a $1 billion loan from the World Bank to support the Dasu Hydropower Project.
The first phase of the project, which aims to improve and extend the nation’s electrical supply, will be funded with the help of these finances.
The initiative, according to the World Bank, will broaden access to socioeconomic amenities and enhance the supply of power.
With the potential to provide inexpensive electricity, the Dasu Hydropower Project will prove to be a major advancement for Pakistan.
Upon completion, the project would increase the capacity of electricity generation from 4,320 megawatts to 5,400 megawatts, according to the lender. A 2,160 megawatt output is anticipated for the first phase.
State Bank of Pakistan cuts key rate by 150bps to 20.5%
To lessen its reliance on costly power generation based on foreign fuels, Pakistan desperately needs more affordable electrical supplies.
The rising cost of electricity has led to a shift towards solar power generation by homes, companies, mosques, and hospitals, hence placing more strain on those who remain connected to the national grid.
In order to successfully implement an automated tax refund system under the Income Tax Ordinance (ITO) 2001, the Federal Board of Revenue (FBR) required $25 million from the World Bank on June 9.
They claim that as part of a public interest case, the FBR filed a report with the Islamabad High Court (IHC) titled “Findings and Recommendations of Committee for Effective Enforcement of Section 170A [of the ITO-2001].”
In the meantime, DHP-I was emphasized as a “crucial project in Pakistan’s efforts to reverse its dependence on fossil fuels and reach 60 per cent renewable energy by 2031” by task team head Rikard Liden.
“By substituting imported fuels, the second additional financing will enable Pakistan to save an estimated $1.8 billion annually and offset approximately 5 million tons of carbon dioxide,” Liden was cited in the release as adding.
The project manager said, “The annual economic return of DHP-I is estimated to be around 28pc.”
