Explanation

The International Bank for Reconstruction and Development (IBRD), part of the World Bank Group, approved a $378.9 million loan for Pakistan’s power transmission system modernization project in early 2026. The project aims to improve energy security, enhance grid stability, and integrate renewable energy, with co-financing from the Asian Infrastructure Investment Bank (AIIB) and the Islamic Development Bank (IsDB). Key details of the project include: Financing Institution: IBRD (World Bank). Loan Amount: $378.9 million. Focus Areas: Installing reactive power management devices, upgrading transmission infrastructure, and supporting National Transmission and Despatch Company (NTDC) institutional reforms. Total Expected Financing: ~$698.75 million, including $92.5 million from AIIB and $92.7 million from IsDB.