The Asian Development Bank (ADB) has sanctioned a $200 million loan to modernise Pakistan’s power distribution infrastructure. The initiative targets reducing energy losses, strengthening infrastructure resilience against climate change, and accommodating the country’s rising electricity demand.
The project will initially support the Lahore Electric Supply Company (LESCO), the Multan Electric Power Company (MEPCO), and the Sukkur Electric Power Company (SEPCO).
Key measures include installing 332,000 advanced metering systems, 15,800 transformer monitoring systems, and upgrading grid stations and high-loss feeder lines. For instance, SEPCO’s grid voltage will be upgraded from 66kV to 132kV, while LESCO will modernise 25 grid stations.
ADB Director General Yevgeniy Zhukov highlighted the project’s role in reducing power sector losses and supporting Pakistan’s economy. Principal Energy Specialist Seung Duck Kim emphasized the benefits of real-time data for grid performance, improved revenue collection, and faster fault recovery during extreme weather.
The project will also explore reforms and policy recommendations to boost the operational performance of these distribution companies. Pakistan, a founding ADB member, has received $52 billion in financing since 1966 to support its infrastructure, energy, and economic growth.