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 program 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 the country’s electricity transmission infrastructure. The project is expected to improve the stability of the power system while helping reduce the frequency of electricity outages for households, businesses, and industries.
The project will also enable an additional 640 megawatts of wind power to be connected to the national grid, supporting Pakistan’s transition toward cleaner and more sustainable energy sources.
The World Bank said the upgraded transmission network will improve the integration of renewable energy while lowering overall electricity supply costs.
The lender added that the project will make Pakistan’s power system more resilient to climate change and is expected to reduce annual carbon emissions by approximately 832,000 tons. It 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 investment is expected to strengthen Pakistan’s efforts to increase the share of renewable energy in its electricity mix while delivering a more stable and reliable power supply across the country.
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