Pakistan Secures $330 Million ADB Loans to Deliver Cheap Electricity in Northern Areas

The Asian Development Bank has approved $330 million in loans for Pakistan’s Second Power Transmission Strengthening Project to help it expand the national grid and send low-cost hydropower to major demand centres. The project includes a new 500-kV, 290-km transmission line and upgrades to key grid installations feeding Islamabad and Faisalabad. ADB said the investment will remove long-standing bottlenecks in the north–south power corridor and enable the transfer of up to 3,200MW of clean energy from northern hydropower plants. The National Grid Company of Pakistan Limited will execute the project. ADB’s financing package comprises a $285 million ordinary capital loan and a $45 million concessional loan. ADB Country Director Emma Fan said the project reinforces Pakistan’s clean-energy transition by improving transmission capacity and integrating low-cost hydropower into the grid. The new infrastructure is expected to cut technical losses, improve grid reliability, and support the financial sustainability of the power sector.