World Bank Approves $375.9 Million Loan for Pakistan’s Power Sector Modernization
Islamabad: The World Bank has approved a $375.9 million loan for Pakistan to support the first phase of the country’s 10-year energy sector modernization program, aimed at improving electricity transmission, reducing power outages, and expanding renewable energy.
According to the World Bank, the financing will be used to modernize Pakistan’s national power transmission network and strengthen the country’s electricity grid. The project is expected to enhance the reliability of electricity supply for domestic, commercial, and industrial consumers while reducing transmission constraints.
The initiative will also facilitate the integration of an additional 640 megawatts of wind power into the national grid, supporting Pakistan’s transition toward cleaner and more sustainable energy sources.
The World Bank stated that the upgraded transmission infrastructure will help lower electricity costs, improve grid stability, and strengthen the power system against climate-related challenges.
The project is expected to reduce annual carbon emissions by approximately 832,000 tons, contributing to Pakistan’s climate resilience and environmental sustainability goals.
Officials said the program will also reinforce the government’s ongoing power sector reforms and accelerate efforts to increase the share of renewable energy in Pakistan’s energy mix.