ADB Pledges Support for Pakistan’s Transition to Renewable Energy

Cooperation to focus on battery storage, digitisation, and governance improvements

April 7, 2026 at 9:20 PM
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Key Points

  • ADB to support solar shift, including battery energy storage systems
  • Assistance to cover digitisation, integrated planning, and governance reforms
  • Studies underway on rooftop solar impact and grid integration challenges

ISLAMABAD: The Asian Development Bank (ADB) will extend financial and technical support to Pakistan to advance the country’s transition to solar and other renewable energy by strengthening ongoing power sector reforms.

This transpired during high-level discussions between the Power Division and an ADBbank delegation.

The understanding was reached during a meeting between Power Minister Sardar Awais Ahmad Khan Leghari and ADB Country Director Emma Xiaoqin Fan, ahead of a planned visit by the lender’s vice president later this month.

ADB’s support is expected to prioritise the integration of solar power with battery energy storage systems, alongside improvements in integrated planning, digitisation, and data governance across the power sector.

The lender is also conducting analytical studies on the growing impact of rooftop solar installations and battery energy storage systems on Pakistan’s electricity network.

The cooperation reflects a shift towards more distributed and decentralised energy solutions.

During the meeting, the Power Division highlighted that Pakistan’s energy sector has shown resilience despite global energy pressures, attributing stability to a gradual shift towards indigenous resources such as hydropower, local coal, and solar energy.

ADB acknowledged the government’s reform efforts and expressed interest in supporting broader initiatives, including privatisation, institutional governance, and capacity building.

The bank is already providing technical assistance for advanced metering infrastructure and training programmes aimed at strengthening professional capacity within the sector.

The bank highlighted the importance of restructuring key institutions such as the National Grid Company and invited support for enhancing transmission infrastructure, noting that future reform efforts would increasingly focus on the transmission segment following privatisation initiatives.

Both sides agreed to maintain close coordination to support the development of a modern, efficient, and sustainable power system, with an emphasis on aligning renewable energy expansion with institutional and structural reforms.

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