Pakistan is set to receive $378.9 million loan from the International Bank for Reconstruction and Development (IBRD) to improve the country’s power transmission.
The loan will be used to modernize the country’s transmission network to strengthen energy security, improve system performance, and support the large-scale integration of renewable energy. A major portion of the financing will be directed toward installing reactive power management devices, which are essential for stabilising the grid and ensuring the efficient transmission of renewable power.
The National Transmission and Despatch Company (NTDC) will also receive technical assistance to support institutional reforms.
The project includes co-financing of $92.5 million from the Asian Infrastructure Investment Bank (AIIB) and $92.7 million from the Islamic Development Bank (IsDB). Overall project financing is projected at $698.75 million, with World Bank approval expected in mid-March 2026.
According to a World Bank document, the initiative aims to enable renewable energy deployment at scale, enhance grid reliability, and advance long-needed sector reforms.
The first phase will prioritize reactive power devices to address grid stability challenges and facilitate the integration of variable renewable energy.
