The World Bank has approved a $375.9 million loan for Pakistan to modernise the country's electricity transmission system, improve grid reliability, reduce power outages, and support the integration of renewable energy into the national power network.
According to the World Bank, the financing will support the first phase of Pakistan's 10-year energy programme aimed at strengthening the country's power transmission infrastructure and improving electricity supply across the country.
The project is expected to modernise the national power grid, making it more reliable, efficient and resilient to climate-related challenges.
Boost to renewable energy
The project will enable the integration of an additional 640 megawatts (MW) of wind power into the national grid, helping Pakistan increase the share of renewable energy in its electricity mix.
The World Bank said the upgraded transmission system will also lower electricity costs by improving efficiency and reducing technical losses.
Reduced outages and emissions
The project is expected to reduce power outages and provide more reliable electricity to domestic, commercial and industrial consumers.
It is also projected to cut carbon emissions by approximately 832,000 tonnes annually, supporting Pakistan's climate goals and transition towards cleaner energy.
Support for power sector reforms
The World Bank said the financing will also strengthen the government's ongoing power sector reforms and improve the stability of the national electricity system.
The investment forms part of a broader 10-year programme designed to enhance Pakistan's energy security while increasing the use of renewable energy sources.
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