The Asian Development Bank (ADB) has approved loans worth $330 million for Pakistan’s Second Power Transmission Strengthening Project, the bank announced on Thursday.
According to ADB, the project is among the Government of Pakistan’s top priorities, aimed at expanding the national transmission system and ensuring the smooth delivery of low-cost renewable and hydropower to major demand centres across the country.
Under the project, a new 500-kilovolt transmission line stretching nearly 290 kilometres will be built, along with upgrades to important grid infrastructure supplying Islamabad and Faisalabad.
ADB says these investments will help ease long-standing bottlenecks in Pakistan’s north–south power corridor, allowing the transfer of up to 3,200 megawatts of hydropower from northern regions. This shift is expected to reduce reliance on imported fuels, strengthen energy security, and support a more sustainable and affordable power mix.
The initiative also backs Pakistan’s broader power sector reforms and contributes to improving governance and performance at state-owned enterprises. The reforms will particularly focus on strengthening the institutional and operational framework of the National Grid Company of Pakistan Limited (NGC)—formerly NTDC—which will oversee the project’s execution as it transitions into a modern grid operator.
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The financing package includes a $285 million loan from ADB’s ordinary capital resources and a $45 million concessional loan. These funds will be used to expand and modernize transmission infrastructure, enhance institutional capacity, improve financial management, and support public outreach and gender equity initiatives within NGC.
ADB Country Director for Pakistan Emma Fan said the project reflects ADB’s strong partnership with Pakistan and their shared commitment to clean energy transition. “By expanding transmission capacity and enabling the delivery of low-cost hydropower, the project aims to improve access to clean energy, reduce system costs, and support Pakistan’s long-term, sustainable economic development,” she noted.
The Second Power Transmission Strengthening Project is aligned with Pakistan’s National Power Policy 2021, Vision 2025, and its Nationally Determined Contributions, all of which prioritize clean energy, climate resilience, energy security, and sustainable development.
ADB added that the new transmission infrastructure will help cut technical losses, improve grid reliability, and strengthen the financial sustainability of the country’s energy sector.
The bank reaffirmed its commitment to working with Pakistan and other development partners to advance energy reforms, enhance governance, and increase access to reliable, greener electricity across the country.
