ISLAMABAD: The Asian Development Bank today approved $330 million in loans to strengthen the Second Power Transmission Project in Pakistan. The government has declared this project a top priority as it expands the national transmission network and improves the evacuation of low-cost renewable and hydropower to major load centres.
New Transmission Line to Boost Connectivity
According to an official press release, the project will construct a 500-kilovolt transmission line stretching nearly 290 kilometres. It will also upgrade essential grid infrastructure that feeds Islamabad and Faisalabad. These developments will enhance the existing energy corridor and address long-standing transmission bottlenecks.
Clean Energy Transfer Set to Increase
The ADB stated that the upgraded systems will enable the transfer of up to 3,200 megawatts of clean energy from northern hydropower plants. This improvement will reduce Pakistan’s dependence on imported fuels and strengthen national energy security. Moreover, the shift will support Pakistan’s ongoing transition to a cleaner and more affordable energy mix.
Support for Broader Energy Reforms
Furthermore, the initiative will reinforce broader power sector reforms by contributing to governance and operational improvements. It will assist the National Grid Company of Pakistan Limited in its progress toward becoming a modern and efficient grid operator. The reforms aim to stabilise institutional, financial, and operational frameworks within the organisation.
ADB Reaffirms Strong Partnership with Pakistan
ADB Country Director for Pakistan Emma Fan said the project reflects the bank’s commitment to accelerating clean energy integration. She stressed that expanded transmission capacity will improve access to low-cost hydropower and reduce overall system costs. She added that these steps will support Pakistan’s long-term and sustainable economic development.
Focus on Reliable and Greener Electricity
Meanwhile, the Asian Development Bank reaffirmed its objective to support Pakistan and its development partners. The bank plans to promote reforms, governance, and expand access to greener and more reliable electricity.
