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World Bank set to provide $10.7bn loan for Pakistan’s energy sector project
Pakistan likely to receive $10.7bn from World Bank for a major energy project, supported by Asian Infrastructure Bank & Islamic Development Bank, to upgrade transmission, storage, and power system reforms.
ND
by News Desk
2026-03-27
World Bank set to provide $10.7bn loan for Pakistan’s energy sector project

Pakistan is expected to secure a new loan of approximately Rs 10.7 billion (around $700 million) from the World Bank for a large-scale energy sector project, aimed at strengthening and stabilizing the country’s electricity system.

The project will also receive support from the Asian Infrastructure Bank and the Islamic Development Bank.

According to project documents, Pakistan’s power sector currently faces serious challenges, including low bill collection, system losses, transmission bottlenecks, and power theft. The proposed initiative seeks to address these issues comprehensively.

Key components of the project

  • Laying a 500 kV transmission line from Matiari to Rahim Yar Khan.
  • Improvements in the national power system, including battery storage solutions.
  • Technical assistance for reforms in the National Transmission & Despatch Company (NTDC).
  • Promoting private sector participation and improving governance in energy institutions.

The project forms part of a 10-year program running from 2026 to 2035, aimed at modernizing Pakistan’s electricity infrastructure and enhancing the reliability of power supply across the country.

The World Bank stressed that these interventions are critical for improving the operational efficiency of the sector and ensuring that electricity supply in Pakistan is more reliable for households and industries.
Tagged:

PakistanEnergy

PowerSectorReforms

WorldBankLoan

ElectricityInfrastructure

NTDCReforms

EnergyDevelopment
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