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ADB Approves $330m Loans for Pakistan’s Power Transmission Upgrade
ADB has approved $330m in loans to boost Pakistan’s power transmission network, enabling 3,200MW of clean energy transfer and supporting long-term energy reforms.
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by Muhammad Hashir
2025-11-20
ADB Approves $330m Loans for Pakistan’s Power Transmission Upgrade

The Asian Development Bank (ADB) announced on Thursday that it has approved loans amounting to $330 million to support Pakistan’s Second Power Transmission Strengthening Project, a major initiative aimed at expanding and modernising the country’s electricity transmission infrastructure.

According to an ADB press release, the project is among the government’s “top priority investments” to upgrade the national transmission network and improve the evacuation of low-cost renewable and hydropower to key demand centres across the country.

Major Infrastructure Boost

Under the project, ADB will finance the construction of a new 500 kilovolt transmission line stretching approximately 290 kilometres. The initiative also includes significant upgrades to critical grid systems that supply power to Islamabad and Faisalabad — two of Pakistan’s largest load centres.

“These investments will address long-standing constraints in Pakistan’s north–south power corridor, enabling the transfer of up to 3,200 megawatts of clean energy from hydropower plants in the north,” the ADB said. The bank noted that this would reduce Pakistan’s reliance on imported fuels, enhance energy security, and support the country’s transition toward a more affordable and sustainable energy mix.

Support for Power Sector Reforms

The financing also contributes to Pakistan’s broader agenda of power sector reforms, particularly efforts to strengthen state-owned enterprises. The project will reinforce institutional, operational, financial, and governance improvements at the National Grid Company of Pakistan Limited (NGC), which will act as the executing agency.

ADB said its financing package includes a $285 million loan from its ordinary capital resources and a $45 million concessional loan, aimed at enabling NGC to expand transmission capacity, modernise critical assets, improve financial management, and advance outreach and gender equity initiatives.

ADB Reaffirms its Support

ADB Country Director for Pakistan Emma Fan emphasised the bank’s commitment to Pakistan’s energy transition, saying:
“This project represents ADB’s strong partnership with Pakistan and our shared commitment to accelerate clean energy transition and integration, and to achieve a resilient and sustainable energy sector. By expanding transmission capacity and enabling the delivery of low-cost hydropower, the project aims to improve access to clean energy in the power mix, reduce system costs, and support Pakistan’s long-term and sustainable economic development.”

Aligned With National Policies

The project aligns with Pakistan’s National Power Policy (2021), Vision 2025, and the country’s Nationally Determined Contributions (2021), all of which prioritise energy security, climate resilience, clean power, and sustainable development. ADB noted that the new infrastructure will help reduce technical losses, enhance grid reliability, and aid the financial sustainability of Pakistan’s power sector.

The bank reaffirmed its continued collaboration with Pakistan and development partners to strengthen sector governance, advance reforms, and expand access to greener, more dependable electricity across the country.
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ADB

CleanEnergy

PakistanEnergy

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