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The Asian Development Bank has approved $330 million in financing for Pakistan’s Second Power Transmission Strengthening Project, a key government initiative aimed at expanding the national grid and enabling low-cost renewable and hydropower delivery to major load centers.
The project will construct a new 500-kilovolt transmission line stretching approximately 290 kilometers and upgrade critical grid infrastructure serving Islamabad and Faisalabad. These improvements will ease long-standing constraints in Pakistan’s north–south power corridor, allowing up to 3,200 megawatts of clean energy from northern hydropower plants to reach key demand centers.
The upgrades are expected to reduce reliance on imported fuels, enhance energy security, and support a more affordable, sustainable energy mix.
The initiative also complements broader power sector reforms and supports state-owned enterprise changes. It strengthens the institutional, financial, operational, and governance framework of the National Grid Company of Pakistan Limited, formerly known as the National Transmission Dispatch Company. The NGC will serve as the executing agency, guiding the company toward modern grid operations.
ADB’s $330 million financing package includes a $285 million loan from ordinary capital resources and a $45 million concessional loan. These funds will enable NGC to expand and modernize transmission assets, improve financial management, build institutional capacity, and advance public outreach and gender equity initiatives.
“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,” said ADB Country Director for Pakistan Emma Fan. “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.”
The project aligns with Pakistan’s National Power Policy 2021, Vision 2025, and Nationally Determined Contributions 2021, emphasizing energy security, climate resilience, affordable clean power, and sustainable development. The new infrastructure will also lower technical losses, improve grid reliability, and strengthen the financial sustainability of the energy sector.
