The World Bank’s Board of Executive Directors approved $375.9 million in financing for Pakistan’s Grid Stability Enhancement Project on Friday. The initiative aims to strengthen the national power transmission network under the Boosting Energy Security through Transmission in Pakistan (BEST-PAK) Multiphase Programmatic Approach (MPA).
Project Overview and Goals
This project is the first phase of a 10-year program designed to modernize Pakistan’s electricity transmission network, reduce power outages, and increase clean energy access for homes, businesses, and industries. “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.”
Grid Instability and Technical Upgrades
Pakistan’s electricity network has long faced grid instability and transmission bottlenecks, limiting reliable power delivery and leaving clean energy generation underutilized. These issues cause frequent outages, higher costs, and lost economic opportunities for millions. The project will install advanced equipment, including Static Synchronous Compensators (STATCOMs) at three major 500 kV substations, as well as fixed reactors and capacitor banks across 26 grid substations. These upgrades will bring 640 MW of currently curtailed wind energy onto the grid, enabling full use of 1,840 MW of wind capacity in southern Pakistan by moving power to major demand centers.
Renewable Energy Integration
The upgrades will also support integration of approximately 491 MW of planned private sector-led renewable energy projects. Together, these improvements will help Pakistan achieve its national commitment of 60 percent renewable energy in its electricity mix by 2030, aligned with the country’s Nationally Determined Contribution under the Paris Agreement. Over its lifetime, the project is expected to avoid approximately 832,500 tons of CO₂ emissions each year, or more than 20.8 million tonnes cumulatively over 25 years.
Institutional Reforms and Climate Resilience
“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 programme in Pakistan. “As the first phase of the BEST-PAK programme, 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 project advances the government’s transmission-sector reform agenda, centered on restructuring the National Transmission & Dispatch Company (NTDC) into specialized successor entities. Drawing on international experience adapted to Pakistan’s needs, it supports faster implementation of reforms to strengthen governance, accountability, operational performance, and long-term sustainability.
Pakistan is among the countries most exposed to climate-related risks, including river and urban flooding and extreme heat. The project’s design requires all new installations to meet climate-resilient specifications, such as elevated platforms above ground to mitigate flood exposure and equipment designed to operate in temperatures up to 55°C. These measures will ensure reliable performance during monsoon seasons and heatwaves.
