The World Bank’s Board of Executive Directors has approved $375.9 million in financing for Pakistan’s Grid Stability Enhancement Project, marking the first phase of the 10-year Boosting Energy Security through Transmission in Pakistan (BEST-PAK) Multiphase Programmatic Approach (MPA).
According to a World Bank statement, the initiative aims to modernise Pakistan’s electricity transmission system, improve grid reliability, reduce power outages, and enable greater integration of renewable energy into the national power network.
“Pakistan’s energy challenges are deeply interconnected with its broader economic stability,” said Bolormaa Amgaabazar, World Bank Country Director for Pakistan.
“By investing in advanced technologies for more resilient transmission infrastructure, this project will contribute to reducing electricity costs, bring more renewable energy onto the grid, and lay the groundwork for a power sector that works better for households, businesses and industries, as well as overall Pakistan’s economy.”
Pakistan’s transmission network has faced persistent challenges, including grid instability and bottlenecks that restrict the efficient delivery of electricity and limit the use of clean energy. These issues have contributed to frequent power disruptions, increased electricity costs, and reduced economic productivity.
Under the project, advanced grid-stabilising technologies will be installed at key transmission facilities. The upgrades include Static Synchronous Compensators (STATCOMs) at three major 500kV substations, along with fixed reactors and capacitor banks across 26 substations.
These improvements are expected to facilitate the transmission of 640MW of currently curtailed wind power, allowing the full utilisation of 1,840MW of wind generation capacity in southern Pakistan by delivering electricity to major consumption centres. The project will also support the integration of around 491MW of planned privately developed renewable energy projects.
According to the World Bank, these enhancements will help Pakistan progress toward its target of generating 60% of its electricity from renewable sources by 2030, in line with its Nationally Determined Contribution under the Paris Agreement.
The project is also expected to prevent approximately 832,500 tonnes of carbon dioxide emissions annually, amounting to more than 20.8 million tonnes over a projected 25-year operational period.
“A reliable and modern transmission grid is essential for Pakistan’s energy future,“ said Waleed Saleh Alsuraih, Lead Energy Specialist for the World Bank’s BEST-PAK program in Pakistan.
“As the first phase of the BEST-PAK program, it unlocks a pathway to large-scale clean energy deployment, stronger energy security, and a modern, commercially oriented transmission sector through targeted infrastructure investments and institutional reforms, creating the conditions for future private capital participation.”
The initiative also supports the government’s transmission-sector reform programme, including the restructuring of the National Transmission & Dispatch Company (NTDC) into specialised successor entities. The reforms are intended to improve governance, accountability, operational efficiency, and the long-term sustainability of the power sector.
Recognising Pakistan’s vulnerability to climate-related hazards such as floods and extreme heat, the World Bank said the project incorporates climate-resilient standards. New infrastructure will be built on elevated platforms to reduce flood risks, while equipment will be designed to operate in temperatures of up to 55°C, ensuring reliable performance during monsoon seasons and heatwaves.
