ISLAMABAD: The Asian Development Bank (ADB) has approved a $330 million loan for Pakistan’s Second Power Transmission Strengthening Project.
The project is aimed at expanding the national transmission network and improving the delivery of affordable hydro and renewable energy to major load centers.
According to ADB, the project is among the Government of Pakistan’s priority investments. It includes the construction of a new 290-kilometer, 500 kV transmission line, along with major upgrades to critical grid infrastructure supplying electricity to Islamabad and Faisalabad.
The development is expected to remove long-standing bottlenecks in the North–South Power Corridor, enabling the transmission of up to 3,200 MW of clean energy from northern hydropower plants.
This will help reduce dependence on imported fuel and strengthen sustainability in the energy sector.
The initiative is also aligned with Pakistan’s broader power sector reforms and institutional improvements. The National Grid Company of Pakistan Limited (formerly NTDC) will implement the project.
The ADB financing package includes $285 million in commercial financing and $45 million in concessional lending, aimed at supporting network expansion, institutional capacity building, financial management improvements, public awareness, and gender equality measures.
ADB Country Director for Pakistan, Emma Fan, stated that the project reflects the strong partnership between Pakistan and ADB.
She noted that enhancing transmission capacity and enabling the flow of low-cost hydropower will not only increase clean energy supply but also reduce system costs and support long-term sustainable economic growth.
The project is aligned with the National Power Policy 2021, Vision 2025, and Pakistan’s Nationally Determined Contributions (NDCs) 2021, which prioritize energy security, climate resilience, affordable clean electricity, and sustainable development.
The new transmission line and upgraded infrastructure are expected to reduce technical losses, improve grid reliability, and support financial stability in the energy sector.
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