The Asian Development Bank (ADB) has approved a total loan of $330 million for Pakistan’s second Power Transmission Strengthening Project.
According to ADB, the project is part of the Government of Pakistan’s priority investments, aimed at expanding the national transmission network and efficiently delivering low-cost hydro and renewable energy to major load centers across the country.
Under the project, a nearly 290-kilometer, 500 kV transmission line will be constructed, while key grid infrastructure supplying Islamabad and Faisalabad will be upgraded with modern technology.
Officials noted that the development will address long-standing bottlenecks in the north-south power corridor, enabling the transmission of up to 3,200 MW of clean energy from northern hydro power plants. This will reduce reliance on imported fuel and enhance sustainability in the energy sector. The project also supports broader government reforms in the power sector and improvements in state-owned institutions.
The National Grid Company of Pakistan Limited, formerly the National Transmission and Dispatch Company, will implement the project, improving institutional, financial, operational, and administrative performance.
The ADB financing package includes a $285 million commercial loan and a $45 million concessional loan, aimed at supporting network expansion, institutional capacity building, financial management, public awareness, and gender equality initiatives.
ADB Pakistan Country Director, Emma Fene, said the project demonstrates the strong partnership between Pakistan and ADB. She added that increasing transmission capacity and delivering low-cost hydro power will not only boost clean energy supply but also reduce system losses and contribute to Pakistan’s long-term sustainable economic growth.
The project aligns with the National Power Policy 2021, Vision 2025, and Pakistan’s Nationally Determined Contributions 2021, which focus on energy conservation, climate resilience, affordable clean electricity, and sustainable development.
The upgraded transmission lines and infrastructure are expected to reduce technical losses, improve grid reliability, and strengthen the financial sustainability of the energy sector.
ADB continues to collaborate with Pakistan and other development partners to support power sector reforms, improved governance, and the delivery of reliable, clean electricity.
