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World Bank Approves $375.9 Million to Launch Pakistan Grid Modernisation

The loan will fund climate‑resilient transmission equipment to unlock curtailed wind power and help pave the way for NTDC reforms to attract private investment.

Overview

  • The World Bank Board approved the $375.9 million Grid Stability Enhancement Project on Friday as the first phase of a 10‑year BEST‑PAK programme to modernise Pakistan’s transmission network.
  • Planned purchases include Static Synchronous Compensators (STATCOMs) for three 500 kV substations and fixed reactors and capacitor banks for 26 substations to stabilize voltage and reduce outages.
  • The upgrades are expected to enable about 640 MW of currently curtailed wind generation and accommodate roughly 491 MW of planned private renewables, supporting Pakistan’s 60% renewables goal for 2030.
  • All new installations must meet climate‑resilient standards—elevated platforms and equipment rated to operate up to 55°C—to withstand floods and extreme heat and keep the grid running during shocks.
  • The financing is tied to transmission‑sector reforms that aim to restructure the National Transmission & Dispatch Company into specialised successor entities to improve governance and attract private capital, with procurement and implementation planning set to follow.