The World Bank has approved a $375.9 million loan for Pakistan to modernize its electricity transmission system, marking the first phase of the country’s 10-year energy programme aimed at improving grid reliability, reducing power outages and expanding renewable energy integration.
According to the World Bank, the financing will support upgrades to Pakistan’s national power grid and strengthen electricity transmission infrastructure. The project is expected to improve the stability of the power system while helping reduce the frequency of outages for households, businesses and industries.
The project will also allow an additional 640 megawatts of wind power to be connected to the national grid, supporting Pakistan’s shift towards cleaner and more sustainable energy sources.
The lender said the upgraded transmission network will improve renewable energy integration while lowering overall electricity supply costs.
It added that the project will make Pakistan’s power system more resilient to climate change and is expected to cut annual carbon emissions by about 832,000 tons. The investment will also support the government’s broader power sector reform agenda by improving the efficiency and reliability of electricity transmission.
According to the World Bank, the project is expected to help Pakistan expand the share of renewable energy in its electricity mix while delivering a more stable and reliable power supply across the country.
