ISLAMABAD: The International Bank for Reconstruction and Development (IBRD) has approved a $378.9 million loan for a major power transmission project in Pakistan.
The initiative, aimed at improving the country’s transmission infrastructure, is designed to enhance energy security, optimise operational performance, and enable greater integration of renewable energy.
The financing will primarily support the installation of reactive power management devices, key to stabilising the transmission system and enabling the smooth transfer of renewable energy. The National Transmission and Despatch Company (NTDC) will benefit from technical assistance for institutional reforms, alongside the co-financing of $92.5 million from the Asian Infrastructure Investment Bank (AIIB) and $92.7m from the Islamic Development Bank (IsDB).
Total project financing is expected to reach $698.75m, with the World Bank set to approve the plan in mid-March 2026. This project is a significant step towards modernising Pakistan’s energy sector and addressing persistent transmission challenges that hinder the delivery of low-cost electricity.
Loan aims to boost grid stability, enhance renewable energy deployment and address transmission bottlenecks
