WB approves $375.9m loan for Pakistan’s power grid modernization

ISLAMABAD: The World Bank has approved a $375.9 million loan for Pakistan to support the first phase of a 10-year energy program aimed at modernizing the country’s electricity transmission network and improving power supply reliability.

According to the World Bank, the financing will be used to upgrade the national power grid, helping reduce electricity outages, strengthen transmission infrastructure, and improve the overall efficiency of the power system.

The project is expected to enable the integration of an additional 640 megawatts of wind power into the national grid, supporting Pakistan’s transition to renewable energy. The upgraded transmission network is also expected to lower electricity delivery costs and improve service for residential, commercial, and industrial consumers.

The World Bank said the program will make Pakistan’s power system more resilient to climate change while supporting the government’s ongoing power sector reforms.

The project is projected to reduce carbon emissions by approximately 832,000 metric tons annually through greater use of clean energy and a more efficient transmission system.

The initiative is part of broader efforts to strengthen Pakistan’s energy infrastructure, improve grid stability, and increase the share of renewable energy in the country’s electricity mix.