By Abdul Ghani

A project aimed at improving efficiency in Pakistan’s power distribution network has achieved only 11.6% financial progress due to relatively low disbursements, according to an official document available with Wealth Pakistan. The Electricity Distribution Efficiency Improvement Project (EDEIP), being executed by the National Grid Company (NGC), has achieved around 30% physical progress, according to the document.

The project carries a total committed financing of $250 million, including $195 million under the ongoing allocation and an additional $55 million. The document shows that the project agreement was signed on June 13, 2018, with a scheduled completion date of December 31, 2026. However, disbursement remains relatively low, with only $22.8 million released as of January 30, 2026. The project is currently awaiting PC-1 approval to initiate activities under the additional $55 million financing.

Of this amount, $38 million is intended for Peshawar Electric Supply Company (Pesco) and $17 million for Hyderabad Electric Supply Company (Hesco). The project proposal was presented to the Executive Committee of the National Economic Council (ECNEC) on August 13, 2025. However, the forum referred it back to the Central Development Working Party (CDWP) for further review and observations.

The CDWP reconsidered the matter on March 4, 2026, and forwarded again to ECNEC for approval of the additional financing. Once approved, the extra funding will help accelerate the installation of modern distribution infrastructure, reduce technical losses and improve electricity supply reliability in key service areas. EDEIP is part of broader efforts to modernise Pakistan’s ageing power distribution network and strengthen operational efficiency across distribution companies.

Credit: INP-WealthPk