The Asian Development Bank (ADB) has approved a financing package worth $330 million for Pakistan under the Second Power Transmission Strengthening project. The project includes the construction of a 500 kV transmission line of about 290 km and the upgrading of key grid infrastructure feeding Islamabad and Faisalabad. These developments will ease the long-standing hurdles in the north–south transmission corridor and enable the transfer of up to 3,200 MW of renewable and hydropower from northern regions.
The National Grid Company of Pakistan Limited (NGC), formerly the National Transmission Dispatch Company, will be the executing agency for this project. ADB’s financing comprises a $285 million loan from its ordinary capital resources and a $45 million concessional loan. Moreover, the financing will help NGC to expand and modernise transmission facilities, increase institutional capability, strengthen financial processes, and advance outreach and gender equity initiatives.
The project aims to expand the national transmission system and improve the flow of renewable and hydropower to major load centres. It is expected to reduce reliance on imported fuels and strengthen energy security through a more sustainable supply mix. Furthermore, it aligns with Pakistan’s National Power Policy (2021), Vision 2025, and its Nationally Determined Contributions (2021), which prioritise secure, climate resilient, and affordable clean energy.
