World Bank flags delays in Pakistan's $425 million power transmission project

Pakistan’s $425 million National Transmission Modernisation-I Project is behind schedule, with 60.12% of its financing disbursed and key infrastructure goals still short of target before its December 31, 2026, closing date. Profit by Pakistan Today reported, citing the World Bank’s latest assessment, that $255.53 million had been disbursed and $124.31 million remained undisbursed, mainly because of delays to the Islamabad West Substation contract.

Implemented by the National Transmission and Despatch Company, now National Grid Company, the project aims to strengthen transmission capacity, reliability and operating efficiency. Against a revised target of 24 new or upgraded substations, 17 were complete as of November 2025; 7.2 kilometres of a revised 11-kilometre transmission line target had been completed. Transmission-loss reductions were 24.31 GWh, against a 414 GWh target, while added substation capacity stood at 3.18 million kVA, compared with 12.516 million kVA targeted.

The project’s ERP system was still not operating in November 2025, and the World Bank kept its overall risk rating at Substantial while raising fiduciary risk from Moderate to Substantial. It retained a Moderately Satisfactory assessment for implementation and development outcomes, although audited financial reporting improved to five months from 14 months.