ISLAMABAD: The World Bank has approved a $378.9 million loan for a major project to improve Pakistan’s electricity transmission system. The goal is to make the grid more stable and to allow more renewable energy to be used across the country.
Most of the money will go toward reactive power devices, which help keep the grid steady. The National Transmission and Despatch Company (NTDC) will also get help to improve management and make some reforms. Other contributors include the AIIB ($92.5 million) and IsDB ($92.7 million), bringing the total funding to almost $699 million. The World Bank is expected to give final approval around mid-March 2026.
The project will run from 2026 to 2035. It includes building a 500kV transmission corridor and improving how the transmission system is managed. Officials say it should help Pakistan deliver electricity more reliably and reduce dependence on expensive thermal power.
Pakistan’s energy capacity has grown a lot since 2010, reaching 46,221 MW in 2024. Still, bottlenecks in the transmission lines, especially along the south-central-north routes, are causing problems. These issues often block renewable energy and make electricity more costly.
The Transmission System Expansion Plan (TSEP) 2024-2034 says around $5.6 billion is still needed to complete delayed projects. By upgrading the grid, Pakistan hopes to use more clean energy and make electricity cheaper and more reliable for everyone.