Islamabad, November 20, 2025 – The Asian Development Bank (ADB) has approved $330 million in financing to support Pakistan’s Second Power Transmission Strengthening Project, a key government initiative aimed at expanding the national transmission system and facilitating the flow of low-cost renewable and hydropower to major demand centers.
According to an ADB press statement, the project includes the construction of a new 500-kilovolt transmission line spanning roughly 290 kilometers, along with critical upgrades to grid infrastructure serving Islamabad and Faisalabad. These investments are designed to address persistent bottlenecks in the north–south power corridor and enable the transmission of up to 3,200 megawatts of clean hydropower from northern regions.
The project is expected to significantly reduce Pakistan’s dependence on imported fuels, bolster energy security, and support the country’s transition toward a more sustainable and affordable power mix. It also aligns with broader power sector reforms, contributing to improvements in governance, financial sustainability, and operational capacity at the National Grid Company of Pakistan Limited (NGC)—formerly NTDC—which will implement the project.
ADB’s financing package includes a $285 million loan from ordinary capital resources and a $45 million concessional loan, aimed at modernizing transmission assets, enhancing institutional capacity, strengthening financial management, and advancing gender and community outreach initiatives.
ADB Country Director Emma Fan noted that the project underscores ADB’s long-term partnership with Pakistan and its commitment to supporting clean energy integration. The initiative aligns with national priorities including the National Power Policy 2021, Vision 2025, and Pakistan’s climate commitments under the Nationally Determined Contributions (2021).
The upgraded infrastructure is expected to reduce technical losses, improve grid reliability, and strengthen the financial resilience of the energy sector as Pakistan moves toward greener, more reliable electricity access.