The World Bank’s Board of Executive Directors has approved $375.9 million in financing for Pakistan’s Grid Stability Enhancement Project, marking a significant step toward strengthening the country’s electricity transmission system, improving grid reliability, and accelerating the integration of renewable energy.
The project is the first phase of the Boosting Energy Security through Transmission in Pakistan (BEST-PAK) Multiphase Programmatic Approach (MPA), a 10-year initiative aimed at modernizing Pakistan’s transmission infrastructure, reducing power outages, and enabling greater use of clean energy across the country.
World Bank Country Director for Pakistan, Bolormaa Amgaabazar, said the investment would help address Pakistan’s interconnected energy and economic challenges by enhancing grid resilience and reducing electricity costs.
“By investing in advanced technologies for a more resilient transmission infrastructure, this project will reduce electricity costs, facilitate greater renewable energy integration, and lay the foundation for a more efficient power sector that benefits households, businesses, industries, and the broader economy,” she said.
Pakistan’s transmission network continues to face grid instability and capacity bottlenecks, limiting reliable power delivery and preventing the full utilization of available renewable energy. These constraints have contributed to frequent power outages, higher electricity costs, and reduced economic productivity.
Under the project, advanced grid stabilization equipment will be installed at key substations to improve electricity flow and network reliability. The upgrades are expected to enable the transmission of 640 MW of currently curtailed wind power, allowing the full utilization of 1,840 MW of installed wind generation capacity in southern Pakistan by delivering electricity to major demand centers.
The project will also facilitate the integration of approximately 491 MW of planned private sector-led renewable energy projects into the national grid.
According to the World Bank, these investments will support Pakistan’s commitment to increasing the share of renewable energy to 60% of the national electricity mix by 2030, in line with the country’s Nationally Determined Contributions (NDCs) under the Paris Agreement.
Over its 25-year operational life, the project is expected to reduce carbon dioxide emissions by approximately 20.8 million tonnes, equivalent to an average annual reduction of 832,500 tonnes.
Waleed Saleh Alsuraih, Lead Energy Specialist for the World Bank’s BEST-PAK Programme, said the initiative represents a major milestone in Pakistan’s energy transition.
“As the first phase of the BEST-PAK programme, the project creates a pathway for large-scale clean energy deployment, strengthens energy security, and supports the development of a modern, commercially oriented transmission sector through strategic infrastructure investments and institutional reforms,” he said.
Beyond infrastructure improvements, the project will support the government’s ongoing transmission sector reform agenda, including the restructuring of the National Transmission and Dispatch Company (NTDC) into specialized successor entities to enhance governance, accountability, operational efficiency, and long-term sector sustainability.
Recognizing Pakistan’s vulnerability to climate change, the project incorporates climate-resilient infrastructure standards. All new installations will feature elevated platforms to minimize flood risks and equipment designed to operate in temperatures of up to 55°C, ensuring reliable performance during extreme heat and monsoon conditions.
The World Bank noted that the initiative is expected to strengthen Pakistan’s energy security, improve grid resilience, and create the conditions necessary for greater private sector investment in the country’s power transmission sector.
