The World Bank’s Board of Executive Directors on Friday approved financing of $375.9 million for Pakistan’s Grid Stability Enhancement Project, the first phase of a 10-year programme aimed at modernizing the country’s electricity transmission network, reducing power outages and accelerating clean energy integration.
World Bank approves $375.9m to modernize Pakistan’s power transmission grid
ISLAMABAD, Jul 10 (APP): The World Bank’s Board of Executive Directors on Friday approved financing of $375.9 million for Pakistan’s Grid Stability Enhancement Project, the first phase of a 10-year programme aimed at modernizing the country’s electricity transmission network, reducing power outages and accelerating clean energy integration.
The project would be implemented under the Boosting Energy Security through Transmission in Pakistan (BEST-PAK) Multiphase Programmatic Approach and is designed to strengthen the national power transmission system while supporting Pakistan’s transition to a more reliable, efficient and sustainable electricity sector, a news release said.
World Bank Country Director for Pakistan Bolormaa Amgaabazar said Pakistan’s energy challenges were closely linked to its broader economic stability, adding that investment in advanced transmission technologies would help reduce electricity costs, improve grid reliability and enable greater integration of renewable energy.
She said the project would lay the foundation for a more resilient power sector that better serves households, businesses and industries while supporting the country’s economic growth.
Pakistan’s transmission network has long faced grid instability and bottlenecks that have constrained reliable electricity supply and limited the utilization of renewable energy resources, resulting in frequent outages, higher costs and reduced economic productivity.
Under the project, advanced grid-stabilizing equipment, including Static Synchronous Compensators (STATCOMs), will be installed at three major 500-kilovolt substations, while fixed reactors and capacitor banks will be deployed across 26 substations to improve electricity flow and system stability.
The upgrades are expected to enable the transmission of 640 megawatts of currently curtailed wind power, allowing the full utilization of 1,840 MW of wind generation capacity in southern Pakistan.
The project would also facilitate the integration of about 491 MW of planned private sector-led renewable energy projects.
According to the World Bank, these improvements would contribute to Pakistan’s target of achieving a 60 percent share of renewable energy in its electricity mix by 2030 under its Nationally Determined Contribution to the Paris Agreement.
Over its 25-year operational life, the project is expected to reduce carbon dioxide emissions by about 832,500 tonnes annually, amounting to more than 20.8 million tonnes cumulatively.
World Bank Lead Energy Specialist Waleed Saleh Alsuraih said a modern and reliable transmission network was essential for Pakistan’s energy future, adding that the project would pave the way for large-scale clean energy deployment, improved energy security and a commercially oriented transmission sector while creating conditions for greater private investment.
The initiative also supports the government’s ongoing reforms in the transmission sector by assisting the restructuring of the National Transmission and Dispatch Company (NTDC) into specialized successor entities to strengthen governance, accountability, operational efficiency and long-term financial sustainability.
Recognizing Pakistan’s vulnerability to climate-related risks, including floods and extreme heat, the project incorporates climate-resilient infrastructure standards.
New installations would be built on elevated platforms to reduce flood risks, while key equipment will be designed to operate at temperatures of up to 55 degrees Celsius, ensuring reliable performance during heatwaves and monsoon seasons.
