The Asian Development Bank (ADB) has approved loans totaling $330 million to Pakistan for the Second Power Transmission Strengthening Project, a key investment aimed at expanding the national transmission network and facilitating the transfer of low-cost renewable and hydropower to major load centers. The project will construct a new 500-kilovolt transmission line spanning approximately 290 kilometers and upgrade critical grid infrastructure supplying Islamabad and Faisalabad. These measures will address long-standing constraints in Pakistan’s north–south power corridor, enabling the evacuation of up to 3,200 megawatts of clean energy, reducing reliance on imported fuels, enhancing energy security, and supporting a more affordable and sustainable energy mix.
The project aligns with Pakistan’s broader power sector reforms and strengthens state-owned enterprise operations by improving the institutional, financial, operational, and governance capacity of the National Grid Company of Pakistan Limited (NGC), the executing agency. ADB’s financing package includes a $285 million loan from its ordinary capital resources and a $45 million concessional loan, which will support the expansion and modernization of transmission assets, bolster institutional capacity, improve financial management, and advance public outreach and gender equity initiatives.
ADB Country Director for Pakistan, Emma Fan, highlighted that the project reflects a strong partnership with Pakistan to accelerate the clean energy transition, expand transmission capacity, and deliver low-cost hydropower. The initiative is expected to enhance access to clean energy, reduce system costs, and support sustainable economic development.
The Second Power Transmission Strengthening Project supports Pakistan’s National Power Policy (2021), Vision 2025, and Nationally Determined Contributions (2021), emphasizing energy security, climate resilience, affordable clean power, and sustainable development. The new infrastructure will 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 advance sector reforms, enhance governance, and expand access to greener and more reliable electricity. Founded in 1966 and owned by 69 members, including 50 from the region, ADB is a leading multilateral development bank committed to fostering inclusive, resilient, and sustainable growth across Asia and the Pacific through innovative financial tools and strategic partnerships.
