The World Bank has approved $375.9 million in financing for Pakistan to upgrade its electricity transmission network, aiming to reduce power outages and support the integration of renewable energy sources. The announcement was made on Thursday by the lender.
Project Details and Objectives
The funding is allocated under the Grid Stability Enhancement Project, which is the first phase of the Boosting Energy Security through Transmission in Pakistan (BEST-PAK) Multiphase Programmatic Approach (MPA). This 10-year program is designed to modernize Pakistan's electricity transmission infrastructure, reduce power disruptions, and increase the supply of clean energy to households, businesses, and industries.
According to the World Bank, the project will focus on deploying advanced technologies to create a more resilient transmission network, which is expected to lower electricity costs and facilitate a greater share of renewable energy on the national grid.
Official Statement
Bolormaa Amgaabazar, World Bank Country Director for Pakistan, emphasized the connection between energy challenges and economic stability. "Pakistan's energy challenges are deeply interconnected with its broader economic stability," she said. "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."
World Bank's Long-Term Support
Pakistan has been a member of the World Bank since 1950. Over the years, the World Bank has provided more than $51.2 billion in assistance to the country. The current portfolio includes 52 operations, one of which is a regional project, with a total commitment of $16.9 billion.
