KEY POINTS
- ADB clears $330m financing package for national grid upgrade
- New 500kV, 290km line to transfer up to 3,200MW of clean energy
- Project to cut reliance on imported fuels and support energy sector reforms
ISLAMABAD: The Asian Development Bank (ADP) on Thursday approved loans worth $330 million for Pakistan’s Second Power Transmission Strengthening Project, a priority initiative aimed at expanding the national grid and enabling the evacuation of low-cost clean energy to major load centres.
The project would construct a new 500 kilovolt transmission line spanning approximately 290 kilometres, together with upgrades to critical grid infrastructure feeding Islamabad and Faisalabad.
According to ADB, the investments will resolve long-standing constraints in the country’s north-south power corridor and allow the transfer of up to 3,200 megawatts of hydropower from northern stations.
ADB noted that enhanced transfer capability will help cut reliance on imported fuels, bolster energy security, and support Pakistan’s transition to a more affordable and sustainable power mix.
The initiative also reinforces the government’s power sector reforms and would contribute to the broader state-owned enterprise reform programme by underpinning institutional, financial, operational, and governance improvements at the National Grid Company of Pakistan Limited, which will serve as the executing agency.
The financing package includes a $285 million loan from ADB’s ordinary capital resources and a $45 million concessional loan.
The bank said the funds will help NGC expand and modernise transmission assets, strengthen institutional capacity, upgrade financial management systems, and advance public outreach and gender equity measures.
ADB Country Director for Pakistan Emma Fan said the project reflects the bank’s strong partnership with Pakistan and a shared commitment to accelerate clean energy transition and integration.
She said that the expansion of transmission capacity and delivery of low-cost hydropower would improve access to clean energy in the power mix, reduce system costs, and support long-term sustainable economic development.
The bank stated that the project aligns with Pakistan’s National Power Policy 2021, Vision 2025, and the country’s Nationally Determined Contributions, which prioritise energy security, climate resilience, affordable clean power, and sustainable development.
The planned infrastructure is expected to reduce technical losses, improve grid reliability, and support the financial sustainability of the energy sector.
