The Asian Development Bank (ADB) has approved loans totalling $330 million to Pakistan for the Second Power Transmission Strengthening Project, ADB said in a statement on its website on Thursday.
The project is one of the Government of Pakistan’s top priority investments to expand the national transmission network and enable the evacuation of low-cost renewable and hydropower to major load centres.
The project will finance the construction of a new 500-kilovolt, approximately 290-kilometre transmission line and the upgrading of critical grid infrastructure supplying Islamabad and Faisalabad.
According to ADB, the investments are designed to ease longstanding constraints in Pakistan’s north–south power corridor and enable the transfer of up to 3,200 megawatts of hydropower from the north, helping cut reliance on imported fuels, improve energy security, and support a more affordable and sustainable energy mix.
ADB said the initiative also supports Pakistan’s wider power sector reform agenda and contributes to state-owned enterprise (SOE) reforms by strengthening the institutional, financial, operational and governance framework of the National Grid Company of Pakistan Limited (NGC), formerly National and Transmission Dispatch Company (NTDC), as it transitions towards operating as a modern grid company. NGC will act as the executing agency for the project.
The financing package includes a $285 million loan from ADB’s ordinary capital resources and a $45 million concessional loan. The funds will be used to expand and modernise transmission assets, build institutional capacity, improve financial management, and advance public outreach and gender equity initiatives within NGC.
"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," she added.
The Second Power Transmission Strengthening Project aligns with Pakistan’s National Power Policy (2021), Vision 2025 and its Nationally Determined Contributions (2021), which prioritise energy security, climate resilience, affordable clean power and sustainable development.
ADB noted that the new infrastructure is expected to reduce technical losses, enhance grid reliability and support the financial sustainability of the energy sector.
According to the statement on ADB’s website, the bank will continue working with Pakistan and other development partners to advance energy sector reforms, strengthen governance and expand access to greener, more reliable electricity.
ADB, founded in 1966 and owned by 69 members—50 from the region—supports inclusive, resilient and sustainable growth across Asia and the Pacific.