The World Bank has approved $375.9 million to help Pakistan improve its electricity transmission network. This funding is for the Grid Stability Enhancement Project, the first phase of a 10-year program called Boosting Energy Security through Transmission in Pakistan (BEST-PAK).
Pakistan’s power system often faces problems like grid instability and transmission bottlenecks. These issues cause frequent power outages, higher electricity costs, and prevent the full use of clean energy. The new project aims to fix these problems by installing advanced equipment at key substations. It will make the grid more stable and reliable.
One major benefit is that it will bring 640MW of currently wasted wind energy into the system. This will help use the full 1,840MW wind capacity in southern Pakistan and support another 491MW of new renewable projects. These steps will help Pakistan reach its goal of 60% renewable energy by 2030.
“Pakistan’s energy challenges are deeply interconnected with its broader economic stability,” said World Bank Country Director Bolormaa Amgaabazar. “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.”
The project also includes climate-resilient designs, such as elevated platforms to protect against floods and equipment that can handle extreme heat up to 55°C. Over its lifetime, it is expected to cut carbon emissions by more than 20.8 million tonnes.
“A reliable and modern transmission grid is essential for Pakistan’s energy future,” added Waleed Saleh Alsuraih, Lead Energy Specialist for the BEST-PAK programme.
The funding will also support reforms in the National Transmission and Dispatch Company (NTDC). Experts believe this investment will reduce load-shedding, boost the economy, and attract more private investment in clean energy. It is a big step toward a stronger and greener power sector in Pakistan.