ADB approves $330 million loan for Pakistan’s transmission upgrade

The Asian Development Bank has approved a $330 million financing package for Pakistan’s Second Power Transmission Strengthening Project. The plan aims to expand and modernize the transmission network so it can absorb more low cost renewable and hydropower.

The funding includes a $285 million loan from ADB’s ordinary capital resources and a $45 million concessional loan. The National Grid Company of Pakistan will serve as the executing agency. It will use the financing to upgrade key assets, strengthen institutional capacity, and support gender equity measures.

A major element of the project is a new 500 kV transmission line of about 290 km. The project also includes upgrades for the Islamabad and Faisalabad areas. These investments will ease constraints along the north south corridor and enable the transfer of as much as 3,200 MW of clean electricity from hydropower plants in the north to major demand centers.

ADB Pakistan Country Director Emma Fan said the project reflects a shared push to speed up Pakistan’s clean energy shift. By improving the delivery of domestic hydropower, the initiative is expected to reduce reliance on imported fuel, cut system costs, and support long term energy security. The effort also advances power sector and state owned enterprise reforms by improving NGC’s operational and financial management.