The Asian Development Bank (ADB) has approved a $330 million loan for Pakistan under the second Power Transmission Strengthening Project.

ADB confirmed that the project is one of the priority investments identified by the government of Pakistan. It seeks to modernise the transmission system and ensure the smooth transfer of low-cost electricity across the country.

Under the project, a new 500 kV transmission line spanning roughly 290 kilometres will be constructed. Additionally, key grid infrastructure supplying electricity to Islamabad and Faisalabad will be upgraded to modern, efficient lines.

Boost to north–south energy flow

The development is expected to remove long-standing bottlenecks in Pakistan’s North-South Power Corridor. Once completed, the upgraded system will allow the transmission of up to 3,200 MW of clean hydropower from the north to central and southern regions.

ADB said the expansion will reduce reliance on imported fuels, enhance energy security, and support the broader agenda of sustainable power sector reforms.

The project will also strengthen the National Grid Company of Pakistan Limited — formerly NTDC — by improving its institutional, financial, operational, and management capacity. The company will be responsible for implementing the project.

The financing package includes:

$285 million commercial loan
$45 million concessional loan

This support will help expand the transmission network, improve financial management, enhance public awareness, and advance gender equality initiatives within the sector.

Emma Fan, ADB Country Director for Pakistan, said the loan reflects the “strong partnership” between Pakistan and ADB.

She added that expanding transmission capacity and deploying low-cost hydropower would “increase clean energy supply, reduce system costs, and support long-term sustainable economic growth.”

Aligned with national energy priorities

The project aligns with Pakistan’s strategic frameworks, including:

National Power Policy 2021
Vision 2025
Nationally Determined Contributions (NDCs) 2021

These policies prioritize climate resilience, affordable clean electricity, energy security, and sustainable development.

The new infrastructure is expected to reduce technical losses, enhance grid reliability, and contribute significantly to the financial sustainability of the country’s power sector.

ADB reaffirmed its commitment to supporting Pakistan in energy reforms, governance improvements, and ensuring the supply of clean and reliable electricity.