ISLAMABAD: The World Bank has said its board of executive directors has approved $375.9 million in financing for Pakistan’s grid stability enhancement project to strengthen the country’s national power transmission network.

The financing is part of the Boosting Energy Sec­urity through Trans­mis­sion in Pakistan (BEST-PAK) Multiphase Progra­mmatic Approach, the lender said on Friday.

The project is the first phase of a 10-year progr­amme to help Pakistan mod­­ernise its electricity transmission network, red­uce power outages, and bring more clean energy to homes, businesses, and industries.

World Bank Country Director for Pakistan Bolo­rmaa Amgaabazar said, “Pakistan’s energy challenges are deeply interconnected with its broader economic stability. By investing in advanced technologies for more resilient transmission infrastructure, this project will help reduce electricity costs, bring more renewable energy onto the grid, and lay the groundwork for a power sector that works better for households, businesses, industries, and Pakistan’s economy as a whole.”

The country’s electricity network has long struggled with grid instability and transmission bottlenecks that limit the delivery of reliable power and leave clean energy generation underutilised. These constraints affect millions of Pakistanis through frequent power outages, hig­her electricity costs, and lost economic opportunities.

The project will install advanced equipment to stabilise the transmission grid and improve electricity flows at key substations. This includes Static Synchronous Compe­ns­ators (STATCOMs) at three major 500kV substations, along with fixed reactors and capacitor banks across 26 grid substations. These upgrades will enable 640MW of currently curtailed wind energy to be integrated into the grid, allowing the full utilisation of 1,840MW of wind generation capacity in southern part of the country by transmitting power to major demand centres. Many of these wind power projects were also financed by the World Bank Group under the government’s preferential treatment framework.

Paris accord

The upgrades will also support the integration of about 491MW of planned private sector-led renewable energy projects. Together, these improvements will help Pakistan advance towards its target of generating 60 per cent of its electricity from renewable sources by 2030, in line with its nationally determined contribution under the Paris Agreement. Over the project’s lifetime, it is expected to avoid around 832,500 tonnes of carbon emissions annually, or more than 20.8m tonnes over 25 years.

“A reliable and modern transmission grid is essential for Pakistan’s energy future,” said Waleed Saleh Alsuraih, lead energy specialist for the World Bank’s BEST-PAK programme in Pakistan. “As the first phase of the BEST-PAK programme, this project creates a pathway for large-scale clean energy deployment, stronger energy security, and a modern, commercially oriented transmission sector through targeted infrastructure investments and institutional reforms, laying the foundation for greater private sector participation.”

The project also advances the government’s ongoing transmission-sector reform agenda, centred on restructuring the National Transmission & Dispatch Company (NTDC) into specialised successor entities.

Adapting to local needs

Drawing on international experience adapted to local needs, it supports the accelerated implementation of reforms aimed at strengthening governance, accountability, operatio­nal performance, and the long-term sustainability of the power sector.

Pakistan is among the countries most vulnerable to climate-related risks, including riverine and urban flooding, as well as extreme heat. The project’s design reflects these challenges by requiring all new installations to meet climate-resilient specifications, including elevated platforms to reduce flood risk and equipment capable of operating at temperatures of up to 55°C. These measures are intended to ensure reliable performance during monsoon seasons and heatwaves.

Pakistan has been a member of the World Bank since 1950. Since then, the institution has provided more than $51.2 billion in assistance to the country. Its current portfolio comprises 52 operations, including one regional project, with total commitments of about $16.9bn.

Since 1959, IFC has invested and mobilised about $22bn in Pakistan across projects supporting renewable energy, financial inclusion, infrastr­ucture, agribusiness, manufacturing, housing, healthcare, and trade, amo­ng other sectors. As of May 15, IFC’s committed portfolio in the cou­ntry stood at $1.6bn across 56 projects.

Published in Dawn, July 11th, 2026