Pakistan is set to secure a new loan worth Rs10.7 billion (approximately $380 million) from the World Bank to support reforms and infrastructure upgrades in its struggling power sector.
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According to official documents, the funding will be part of a larger energy project aimed at improving electricity supply, reducing system losses, and modernising outdated infrastructure. The total cost of the initiative is estimated at around $700 million, with additional financial assistance expected from the Asian Infrastructure Investment Bank and the Islamic Development Bank.
A key component of the project focuses on strengthening Pakistan’s electricity transmission and distribution network. Plans include the installation of advanced battery storage systems and the development of new transmission infrastructure to enhance efficiency and grid stability.
One of the major highlights is the proposed construction of a 500 kV transmission line linking Matiari to Rahim Yar Khan, which is expected to significantly improve power flow and reduce bottlenecks in the system.
The World Bank has identified several persistent structural challenges in Pakistan’s power sector, including electricity theft, low bill recovery rates, transmission losses, and outdated infrastructure. These issues have contributed to financial strain and inefficiencies across the system for years.
The proposed project aims to address these problems through targeted reforms, technological upgrades, and improved operational practices. It is part of a broader 10-year program (2026–2035) designed to stabilise and modernise the country’s energy sector.
Technical support will also be extended to the National Transmission and Dispatch Company (NTDC) to strengthen institutional capacity and improve governance.
The World Bank has emphasized the importance of better governance, transparency, and increased private sector participation to ensure long-term sustainability. The initiative ultimately seeks to deliver a more reliable and efficient electricity supply system to support economic growth in Pakistan.
