ISLAMABAD: Pakistan is expected to receive a loan of Rs10.7 billion (approximately $380 million) from the World Bank to support critical reforms and infrastructure upgrades in its power sector.
The funding will contribute to a major energy project aimed at improving electricity supply, reducing system losses, and modernising the country’s transmission and distribution network. The total project cost is estimated at around $700 million, with additional financing from the Asian Infrastructure Investment Bank and the Islamic Development Bank.
A key component of the initiative includes the installation of advanced battery energy storage systems and the development of new transmission infrastructure to enhance efficiency and grid reliability. Notably, the project features the construction of a 500 kV transmission line from Matiari to Rahim Yar Khan, aimed at strengthening power evacuation and distribution capacity.
The World Bank has highlighted persistent structural challenges in Pakistan’s energy sector, including electricity theft, low bill recovery, high transmission losses, and infrastructure bottlenecks. These issues have long undermined the financial viability and operational efficiency of the system.
To address these concerns, the project will also provide technical assistance to the National Transmission and Dispatch Company, supporting institutional reforms and capacity building.
The initiative forms part of a broader 10-year program (2026–2035) focused on transforming Pakistan’s power sector through improved governance, enhanced operational efficiency, and greater private sector participation.
The overarching objective is to ensure a more reliable, sustainable, and financially stable electricity supply system, helping Pakistan meet growing energy demand while reducing systemic inefficiencies.
