Pakistan

Asian Development Bank Approves $330 Million Loan to Upgrade Pakistan’s Power Transmission Network

Islamabad – The Asian Development Bank (ADB) has approved a $330 million loan to help Pakistan enhance its national electricity transmission system. Under the project, a new 290-kilometer, 500 kV transmission line will be constructed, and key grid stations in Islamabad and Faisalabad will be upgraded.

The project is expected to facilitate the transmission of up to 3,200 MW of affordable electricity, reducing reliance on imported fuel and contributing to stability in the energy sector.

ADB’s financing includes $285 million as an OCR (ordinary capital resources) loan and $45 million as a concessional loan. The new transmission line is projected to reduce line losses and increase grid reliability.

According to ADB, the initiative aligns with Pakistan’s National Power Policy 2021 and Vision 2025, supporting energy sector reforms, financial sustainability, and lower overall electricity costs through better integration of affordable power.

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