ISLAMABAD: The World Bank (WB) has approved a $375.9 million loan for Pakistan to support the first phase of a 10-year energy program aimed at modernizing the country’s electricity transmission network and improving power supply reliability.
According to the World Bank, the financing will be used to upgrade the national power grid, helping reduce electricity outages, strengthen transmission infrastructure, and improve the overall efficiency of the power system.
The project is expected to enable the integration of an additional 640 megawatts of wind power into the national grid, supporting Pakistan’s transition to renewable energy.
The upgraded transmission network is also expected to lower electricity delivery costs and improve service for residential, commercial, and industrial consumers.
The World Bank said the program will make Pakistan’s power system more resilient to climate change while supporting the government’s ongoing power sector reforms.
The project is projected to reduce carbon emissions by approximately 832,000 metric tons annually through greater use of clean energy and a more efficient transmission system.
The initiative is part of broader efforts to strengthen Pakistan’s energy infrastructure, improve grid stability, and increase the share of renewable energy in the country’s electricity mix.
More read, Pakistan must create 30 million jobs over next decade, WB President
Earlier, Pakistan must generate up to 30 million jobs over the next decade to turn its growing youth population into an economic dividend, or risk rising instability and outward migration, World Bank President Ajay Banga has warned.
Speaking to Reuters during a visit to Karachi this week, Banga said Pakistan faces a “generational challenge” as millions of young people enter the workforce each year. The country needs to create 2.5 to 3 million jobs annually, he said, adding that failure to do so could fuel illegal migration and domestic unrest.
Pakistan is entering the implementation phase of a 10-year Country Partnership Framework (CPF) agreed with the World Bank last year, while continuing efforts with the International Monetary Fund (IMF) to stabilise its economy. Despite these steps, Islamabad remains under pressure to deliver sustained growth and employment.
