ISLAMABAD: The World Bank has approved a loan of $375.9 million for Pakistan to modernize its energy infrastructure and enhance the efficiency of the national power grid.
According to an official statement, the funding is earmarked for the first phase of a comprehensive 10-year energy program.
The financial assistance will primarily be utilized to upgrade the electricity transmission system, with a specific focus on modernizing the national grid to mitigate frequent power outages and ensure a more stable supply of electricity across the country.
The project is expected to significantly boost the share of renewable energy in Pakistan’s power mix by facilitating the integration of an additional 640 megawatts of wind power into the national grid.
The World Bank noted that a modernized transmission network would not only lower the overall cost of electricity but also improve service delivery for domestic, industrial, and commercial consumers.
In addition to infrastructure upgrades, the program aims to make Pakistan’s energy system more resilient to the impacts of climate change. The initiative is projected to reduce carbon emissions by approximately 832,000 tons annually, aligning with global environmental goals.
The statement further highlighted that the project will provide critical support to the government’s ongoing power sector reforms. By enhancing transmission efficiency and increasing the stability of the grid, the program seeks to create a sustainable energy framework that accelerates the transition toward green energy.
