A memorandum of understanding (MOU) in this regard was signed between Overseas Private Investment Corporation (OPIC) and K-Electric (KE) Limited at a ceremony attended by Pakistan Finance Minister Ishaq Dar at the US Chamber of Commerce yesterday.
KE supplies electricity to the city of Karachi, as well as to nearby towns in the provinces of Balochistan and Sindh.
The OPIC loan will be used by KE to undertake a comprehensive and transformative upgrade of the K-Electric power grid, a statement said.
The project will also help support KE loss-reduction measures and will include an innovative smart grid initiative to more accurately distribute and utilise existing power, the statement said.
Karachi has been facing frequent power breakdowns due to technical faults. The power breakdowns made the life of Karachites totally miserable during the first week of Ramazan in May when around 1,300 people died due to an unusual heat wave.