The Asian Development Bank (ADB) has approved $330 million in ADB financing for Pakistan to expand clean power transmission infrastructure, marking a major step toward strengthening the Pakistan energy sector and reducing the country’s dependence on costly imported fuels.
According to a statement released on Thursday, the funding will support the Second Power Transmission Strengthening Project — a high-priority initiative for Islamabad aimed at widening the national transmission network and enabling the evacuation of affordable renewable and hydropower to major load centres.
New 500kV Line to Move 3,200MW Hydropower
The project will include the construction of a 500-kilovolt transmission line spanning roughly 290 kilometres, along with upgrades to essential grid systems serving Islamabad and Faisalabad. ADB said the improvements will ease long-standing transmission bottlenecks in the north–south corridor and allow the transfer of up to 3,200MW of clean hydropower from northern regions.
The bank noted that the initiative will bolster energy security, support a more sustainable power mix, and drive down system costs by reducing reliance on imported fossil fuels.
Strengthening the National Grid Company
The investment is also designed to advance power sector reforms. It will help enhance institutional capacity, modernise financial and operational frameworks, and improve governance at the National Grid Company of Pakistan Limited (NGC) — formerly NTDC — which will execute the project as it transitions into a fully modern grid operator.
ADB’s financing package includes a $285 million loan from ordinary capital resources and a $45 million concessional loan. The funds will be used to expand and modernise transmission assets while also supporting public outreach initiatives and gender equity programmes within NGC.
‘A Shared Commitment to Clean Energy’
“This project represents ADB’s strong partnership with Pakistan and our shared commitment to accelerate clean energy transition and integration,” said ADB Country Director Emma Fan. She added that expanding transmission capacity is central to improving access to lower-cost clean power and supporting long-term, sustainable economic growth.
Aligned With National Climate and Energy Goals
The transmission strengthening initiative supports key government strategies, including Pakistan’s National Power Policy (2021), Vision 2025, and Nationally Determined Contributions (2021), which place emphasis on renewable energy, climate resilience, and financial sustainability.
ADB said the new infrastructure is expected to reduce technical losses, enhance grid reliability, and reinforce the financial viability of the overall Pakistan energy sector. The bank reaffirmed its intention to continue working with Pakistan and development partners to advance sector reforms and expand access to greener, more reliable electricity.
