The Asian Development Bank (ADB) has approved a $330 million loan for Pakistan under the second Power Transmission Strengthening Project. The initiative aims to modernize the national transmission system and ensure smooth delivery of affordable electricity across the country.
ADB confirmed that the project is a key priority for Pakistan’s government. It includes the construction of a new 500 kV transmission line, covering approximately 290 kilometres. The plan also upgrades critical grid infrastructure supplying Islamabad and Faisalabad with modern, efficient lines.
Boosting North-South Energy Flow
The project is expected to remove bottlenecks in Pakistan’s North-South Power Corridor. Once completed, it will allow transmission of up to 3,200 MW of clean hydropower from northern to central and southern regions. ADB stated that this expansion will reduce dependence on imported fuels and strengthen the country’s energy security.
The project will also enhance the National Grid Company of Pakistan Limited, formerly NTDC, by improving its operational, financial, and management capacity. The company will oversee the implementation of all project activities.
Loan Details and Support
The $330 million financing package consists of a $285 million commercial loan and a $45 million concessional loan. The funds will help expand the transmission network, improve financial management, raise public awareness, and promote gender equality initiatives within the energy sector.
ADB Country Director for Pakistan, Emma Fan, said the loan reflects the strong partnership between Pakistan and ADB. She added that expanding transmission capacity and deploying low-cost hydropower will increase clean energy supply, lower system costs, and support sustainable economic growth.
Aligned with National Energy Goals
The project supports Pakistan’s strategic energy policies, including the National Power Policy 2021, Vision 2025, and the Nationally Determined Contributions (NDCs) 2021. It will reduce technical losses, improve grid reliability, and enhance the financial sustainability of the power sector.
In other related news also read ADB Has Granted Pakistan A $250 Million Loan
ADB reaffirmed its commitment to supporting Pakistan in energy reforms, governance improvements, and providing reliable, clean electricity for long-term development.
