ISLAMABAD, March 31 : Low disbursements have slowed progress on a key power-sector project aimed at improving efficiency in Pakistan’s electricity distribution system, according to an official document reviewed by Wealth Pakistan.
The Electricity Distribution Efficiency Improvement Project (EDEIP), implemented by the National Grid Company, has achieved only 11.6% financial progress despite reaching around 30% physical completion, highlighting a gap between funding release and on-ground work.
Funding delays and approval process
The project has a total committed financing of $250 million, including $195 million under the current allocation and an additional $55 million pending approval. As of January 30, 2026, only $22.8 million had been disbursed.
Also Read: CBD PULSE PUNJAB’S STRONGEST SIGNAL TO GLOBAL INVESTORS
According to the document, the project agreement was signed on June 13, 2018, with completion scheduled for December 31, 2026. However, further progress is contingent on approval of the additional funding, which requires a revised PC-1.
The proposal for extra financing was presented to the Executive Committee of the National Economic Council (ECNEC) in August 2025 but was referred back to the Central Development Working Party (CDWP) for further review. The CDWP reconsidered the case on March 4, 2026, and forwarded it again to ECNEC.
Planned impact on power distribution
Of the additional $55 million, $38 million is allocated for Peshawar Electric Supply Company (Pesco) and $17 million for Hyderabad Electric Supply Company (Hesco).
Once approved, the funding is expected to support installation of modern distribution infrastructure, reduce technical losses, and improve electricity supply reliability in key areas.
The EDEIP is part of broader efforts to modernise Pakistan’s ageing power distribution network and enhance operational efficiency across distribution companies.
Today's E-Paper