Pakistan secures $330m financing for clean energy transmission expansion

This will address the prevailing issues in the north–south power corridor.

The Asian Development Bank (ADB) has granted Pakistan loans amounting to $330m for its transmission network enhancement.

According to ADB, the Second Power Transmission Strengthening Project will construct a new 500-kilovolt, approximately 290-kilometre transmission line and upgrade critical grid infrastructure feeding Islamabad and Faisalabad.

“These investments will address long-standing constraints in Pakistan’s north–south power corridor, enabling the transfer of up to 3,200 megawatts of clean energy from hydropower plants in the north of the country,” ADB said.

This will also reduce reliance on imported fuels, improve energy security, and support Pakistan’s transition to a more affordable and sustainable energy mix.

The financing package comprises a $285m loan from its ordinary capital resources and a $45m concessional loan. This financing will help the National Grid Company of Pakistan Limited expand and modernise transmission assets, strengthen institutional capacity, improve financial management, and advance public outreach and gender equity initiatives.

“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,” said ADB Country Director for Pakistan Emma Fan.

The Second Power Transmission Strengthening Project aligns with Pakistan’s National Power Policy (2021), Vision 2025, and Pakistan’s Nationally Determined Contributions (2021). It will also lower technical losses, enhance grid reliability, and support the financial sustainability of the energy sector.