World Bank approves $375.9m to strengthen Pakistan’s power transmission network

The World Bank has approved $375.9 million in financing for Pakistan to modernise its electricity transmission network, marking the first phase of a 10-year programme designed to improve grid reliability, reduce transmission bottlenecks and support the country's transition towards cleaner energy.

According to a statement issued on Thursday, the financing will support the Grid Stability Enhancement Project, which is being implemented under the Boosting Energy Security through Transmission in Pakistan (BEST-PAK) Multiphase Programmatic Approach.

The project will upgrade key transmission substations with advanced grid-stabilising equipment to improve the flow of electricity across the national network. The World Bank said the investment would enable 640 megawatts (MW) of currently constrained wind generation to be delivered to the grid, allowing the full utilisation of 1,840MW of installed wind capacity in southern Pakistan. It will also facilitate the integration of approximately 491MW of planned private sector renewable energy projects.

The lender said Pakistan's transmission network continues to face grid instability and capacity constraints that contribute to frequent power outages, higher electricity costs and the underutilisation of renewable energy resources, affecting households, businesses and industrial consumers.

According to the World Bank, the upgrades will support Pakistan's target of generating 60% of its electricity from renewable sources by 2030, consistent with the country's commitments under the Paris Agreement.

The project is expected to reduce carbon emissions by around 832,500 tonnes annually, equivalent to more than 20.8 million tonnes over its projected 25-year operational life.

Beyond infrastructure investment, the programme will support the government's transmission-sector reform agenda by assisting with the restructuring of the National Transmission and Dispatch Company (NTDC) into specialised successor entities. The reforms are intended to strengthen governance, improve operational performance, enhance accountability and create conditions for greater private sector participation in the transmission network.

The World Bank also said the project incorporates climate-resilient design standards, with new installations to be built on elevated platforms to reduce flood risks and equipped to operate in temperatures of up to 55°C, helping ensure reliable performance during heatwaves and monsoon conditions.