Pakistan is likely to secure a new loan of Rs10.7 billion (around $380 million) from the World Bank to strengthen its struggling power sector.
The funding will be used for a major energy project aimed at improving electricity supply, reducing losses, and modernising infrastructure.
According to official documents, the World Bank is expected to provide Rs10.7 billion for the project, which forms part of a broader initiative to stabilise Pakistan’s electricity system.
The total cost of the project is estimated at around $700 million, with additional financial support coming from the Asian Infrastructure Investment Bank and the Islamic Development Bank.
Strengthening power infrastructure
The project aims to enhance and stabilise Pakistan’s electricity transmission and distribution network. Key components include the installation of battery storage systems and the development of new transmission infrastructure to improve efficiency and reliability.
A major highlight of the plan is the construction of a 500 kV transmission line from Matiari to Rahim Yar Khan.
The World Bank has identified several structural challenges in Pakistan’s power sector, including electricity theft, low bill collection rates, system losses, and transmission bottlenecks.
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These issues have long contributed to inefficiencies and financial strain within the energy system. The proposed project is designed to tackle these problems through targeted reforms and infrastructure upgrades.
The initiative is part of a broader 10-year program spanning from 2026 to 2035, aimed at improving Pakistan’s power sector performance. Technical assistance will also be provided to support reforms within the National Transmission and Dispatch Company (NTDC).
The World Bank has stressed the need to improve governance in energy institutions and promote private sector participation. The overall goal is to make Pakistan’s power supply more reliable while ensuring long-term sustainability and efficiency.
