$330 million for Pakistan’s power grid from the Asian Development Bank
The Asian Development Bank (ADB) has approved loans totaling $330 million for the project to strengthen the electricity transmission network in Pakistan. This project is considered one of the government’s priority investments to expand the national transmission network and enable the transfer of low-cost renewable energy and hydropower to major consumption centers.
According to a statement released on Thursday, the project includes the construction of a new 500-kilovolt transmission line covering a distance of about 290 kilometers and the modernization of key grid infrastructure serving Islamabad and Faisalabad.
“These investments will address long-standing bottlenecks in Pakistan’s north-south power corridor and enable the transfer of up to 3,200 megawatts of clean energy from hydroelectric power plants in the north of the country. This will reduce dependence on imported fuels, improve energy supplies and support Pakistan’s transition to a more cost-effective and sustainable energy mix,” the multilateral lender said.
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The initiative supports comprehensive reforms in Pakistan’s energy sector and contributes to the reform of state-owned enterprises by consolidating institutional, financial, operational and governance improvements of the National Grid Company of Pakistan Limited (NGC) – formerly National Transmission Dispatch Company (NTDC) – on its path to becoming a modern grid operator.
The NGC will act as the executing agency for the project.
“ADB’s financing package consists of a loan of $285 million from its ordinary capital resources and a concessional loan of $45 million,” the statement said.
This funding will help the NGC expand and modernize transmission facilities, strengthen institutional capacity, improve financial management, and advance public education and gender equity initiatives.
“This project represents ADB’s strong partnership with Pakistan and our shared commitment to accelerate the transition to clean energy, promote integration and achieve a resilient and sustainable energy sector,” said Emma Fan, ADB’s country director for Pakistan.
“By expanding transmission capacity and enabling the delivery of low-cost hydropower, the project aims to improve access to clean energy in the energy mix, reduce system costs and support Pakistan’s long-term and sustainable economic development.”
The project to strengthen the second electricity transmission network is in line with Pakistan’s National Energy Policy (2021), Vision 2025 and Pakistan’s Nationally Determined Contributions (2021), which emphasize energy security, climate resilience, affordable clean energy and sustainable development.
The new infrastructure will also reduce technical losses, improve grid reliability and support the financial sustainability of the energy sector.
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