Wedoany.com Report-Nov. 21, The Asian Development Bank (ADB) has approved a $330 million financing package for Pakistan’s Second Power Transmission Strengthening Project to upgrade and expand the country’s electricity transmission network for greater integration of clean energy sources.

The Second Power Transmission Strengthening Project aims to support Pakistan’s long-term sustainable economic development.

The package consists of a $285 million loan from ADB’s ordinary capital resources and a $45 million concessional loan. The National Grid Company of Pakistan (NGC), the project’s executing agency, will use the funds to construct new transmission infrastructure, modernize existing facilities, strengthen institutional capacity, improve financial management, and implement community outreach and gender-equity programs.

Key components include building a new 500 kV transmission line approximately 290 kilometers long and upgrading grid stations that serve the Islamabad and Faisalabad areas. These enhancements will address capacity constraints in Pakistan’s north-south power corridor and enable the transfer of up to 3,200 MW of low-cost hydropower and renewable energy from northern generation sites to major consumption centers.

The initiative supports Pakistan’s objectives to increase the share of clean energy in its power mix, reduce reliance on imported fuels, lower overall system costs, and enhance long-term energy security. It also contributes to broader power sector reforms by promoting operational efficiency, financial sustainability, and improved governance at NGC.

ADB Pakistan Country Director Emma Fan stated: “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. 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.”

The project is expected to reduce technical losses, improve grid reliability, and facilitate a smoother transition toward a more affordable and environmentally sustainable energy system. It aligns with national priorities for energy security, climate resilience, and inclusive development.

This latest approval follows a $200 million ADB loan extended in December 2024 to modernize Pakistan’s power distribution networks, reflecting continued multilateral support for the country’s efforts to build a robust and clean energy infrastructure.