The Asian Development Bank (ADB) has approved a financing package worth $330 million to help Pakistan upgrade and expand its national power transmission system, with a focus on carrying more affordable renewable and hydropower across the country.
According to the bank, the funding will support the Second Power Transmission Strengthening Project — a key initiative aimed at easing long-standing congestion in the north–south power corridor. The project includes building a new 500kV transmission line stretching nearly 290 kilometres, along with major upgrades to grid facilities supplying Islamabad and Faisalabad.
ADB said these improvements will enable the system to transfer up to 3,200 megawatts of clean electricity from northern hydropower plants to major consumption hubs. The bank noted that increasing the supply of cheaper local energy will help Pakistan cut its dependence on imported fuel, reduce the overall cost of power generation, and strengthen energy security.
The National Grid Company of Pakistan Limited (NGC) will implement the project and is expected to benefit from institutional and operational reforms tied to the financing. ADB stated that the package consists of a $285m regular loan and a $45m concessional loan.
Beyond physical upgrades, the programme also aims to enhance NGC’s financial management, modernise systems, and support initiatives related to gender inclusion and public engagement.
ADB Country Director for Pakistan Emma Fan described the project as a significant step in the country’s clean energy transition. She said the expansion in transmission capacity will allow Pakistan to integrate more low-cost renewable power, lower system losses, and support long-term sustainable development.
The bank added that the initiative aligns with Pakistan’s National Power Policy 2021, Vision 2025, and commitments under its updated Nationally Determined Contributions, all of which prioritise climate resilience, energy affordability, and sustainable growth.
ADB reaffirmed its commitment to assisting Pakistan with sector reforms, improved governance, and the ongoing shift toward a more reliable and greener electricity supply.
