ISLAMABAD (MNN); The Asian Development Bank (ADB) on Thursday announced the approval of $330 million in loans for Pakistan’s Second Power Transmission Strengthening Project.
According to an ADB press release, the initiative is among the government’s top investment priorities, aimed at expanding the national transmission network and ensuring the delivery of low-cost renewable and hydropower to major load centres.
Under the project, a new 500kV transmission line spanning around 290 kilometres will be built, while key grid infrastructure supplying Islamabad and Faisalabad will also be upgraded.
ADB said the investment would ease long-standing bottlenecks in Pakistan’s north–south power corridor, enabling the transfer of up to 3,200 megawatts of clean energy from northern hydropower sources.
This, the bank noted, will reduce dependence on imported fuels, boost energy security, and support a shift towards a more affordable and sustainable energy mix.
The bank added that the project forms part of Pakistan’s broader power sector reforms and supports state-owned enterprise restructuring by enhancing institutional, operational, and governance capacity of the National Grid Company of Pakistan Limited (NGC), which will execute the project.
The financing package includes a $285m loan from ADB’s ordinary capital resources and a $45m concessional loan.
According to the bank, the funds will help the NGC modernise transmission assets, strengthen institutional capabilities, improve financial management, and advance public engagement and gender inclusion initiatives.
ADB Country Director for Pakistan Emma Fan said the project reflects the strong partnership between ADB and Pakistan, underscoring a shared commitment to clean energy integration and building a resilient power sector.
She said the expansion in transmission capacity and increased access to low-cost hydropower will help lower system costs and contribute to long-term sustainable economic growth.
The project aligns with Pakistan’s National Power Policy (2021), Vision 2025, and Nationally Determined Contributions (2021), which emphasise clean, affordable, and climate-resilient energy development.
ADB reaffirmed its continued support to Pakistan in advancing reforms, improving sector governance, and expanding access to reliable and greener electricity.
