Power Sector Improvement Activity (PSIA) Progress Report, Q2 FY 2023

The activity began on January 27, 2022, and is scheduled to conclude on September 26, 2025. The primary objectives of PSIA are to increase power sector competition, improve the management and operation of transmission and distribution (T&D) systems, and optimize grid electricity load. During the second quarter of fiscal year 2023 (January to March 2023), significant progress was made in achieving these objectives. Support was provided to the Government of Pakistan's (GOP) International Energy Investment Roadshow in Dubai, which aimed to attract foreign investment in the power sector. A grant announcement was made for the establishment of an e-mobility R&D center at the Lahore University of Management Sciences (LUMS). Capacity development initiatives were also undertaken to improve the management and operations of T&D systems. A workshop on .NET solution architecture and best practices brainstorming was conducted, and capacity development for integrated system and energy planning programs was provided. Additionally, capacity building of distribution companies (DISCOs) for transitioning to Competitive Trading Bilateral Contract Market (CTBCM) was undertaken. The PSIA also made progress in increasing power sector competition through support to develop Pakistan's wholesale electricity market. A workshop on wholesale electricity market design and implementation was conducted, and a study on the impact of wholesale electricity market on DISCOs was completed. Furthermore, a report on the status of the wholesale electricity market was submitted to the GOP. In terms of improving the management and operation of T&D systems, a workshop on asset performance management system (APMS) was conducted, and a study on the impact of APMS on T&D system efficiency was completed. Additionally, a report on the status of T&D system management and operation was submitted to the GOP. The PSIA also made progress in optimizing grid electricity load. A study on the impact of grid electricity load on power sector efficiency was completed, and a report on the status of grid electricity load optimization was submitted to the GOP. Environmental interventions were also undertaken during the second quarter of fiscal year 2023. A workshop on environmental impact assessment of power sector projects was conducted, and a study on the impact of power sector projects on the environment was completed. Implementation challenges were also addressed during the second quarter of fiscal year 2023. A workshop on project management and implementation was conducted, and a study on the impact of implementation challenges on project success was completed. Gender interventions were also undertaken during the second quarter of fiscal year 2023. A workshop on gender mainstreaming in power sector projects was conducted, and a study on the impact of gender mainstreaming on project success was completed. Progress in numbers was also reported during the second quarter of fiscal year 2023. The PSIA achieved 85% of its quarterly targets, and 75% of its annual targets. The activity also incurred costs of $1.5 million during the second quarter of fiscal year 2023. Financial reporting was also provided during the second quarter of fiscal year 2023. The PSIA reported a total expenditure of $3.5 million during the first six months of fiscal year 2023. The activity also reported a total income of $2.5 million during the same period. Operations and administration were also reported during the second quarter of fiscal year 2023. The PSIA reported a total of 15 staff members, and a total of 10 consultants were engaged during the second quarter of fiscal year 2023. Planned interventions for the next quarter were also reported during the second quarter of fiscal year 2023. The PSIA plans to conduct a workshop on wholesale electricity market design and implementation, and a study on the impact of wholesale electricity market on DISCOs. Additionally, the activity plans to conduct a workshop on asset performance management system (APMS), and a study on the impact of APMS on T&D system efficiency.