The Asian Development Bank ( ADB ) has approved loans totalling US$330 million for Pakistan’s Second Power Transmission Strengthening Project.

The financing package comprises a $285 million loan from the bank’s ordinary capital resources and a US$45 million concessional loan.

The project will construct a new 500-kilovolt, 290-kilometre transmission line and upgrade critical grid infrastructure feeding Islamabad and Faisalabad. The investments will address long-standing constraints in Pakistan’s north–south power corridor, enabling the transfer of up to 3,200 megawatts of clean energy from hydropower plants in the north to major load centres.

This will help reduce reliance on imported fuels, improve energy security, and support Pakistan’s transition to a more affordable and sustainable energy mix.

The initiative is one of the government’s top priority investments. It supports broader power sector reforms and contributes to state-owned enterprise ( SOE ) reforms by solidifying institutional, financial, operational, and governance improvements at the National Grid Company of Pakistan Limited ( NGC ) – formerly the National Transmission Dispatch Company ( NTDC ) – as it moves towards becoming a modern grid operator.

The NGC will serve as the executing agency for the project. The financing will help NGC expand and modernize transmission assets, strengthen institutional capacity, improve financial management, and advance public outreach and gender equity initiatives.

"This project represents ADB's strong partnership with Pakistan and our shared commitment to accelerate clean energy transition and integration, and to achieve a resilient and sustainable energy sector," says ADB country director for Pakistan Emma Fan. "By expanding transmission capacity and enabling the delivery of low-cost hydropower, the project aims to improve access to clean energy in the power mix, reduce system costs, and support Pakistan's long-term and sustainable economic development."

The Second Power Transmission Strengthening Project aligns with Pakistan’s National Power Policy ( 2021 ), Vision 2025, and Nationally Determined Contributions ( 2021 ), which emphasize energy security, climate resilience, affordable clean power, and sustainable development. The new infrastructure will also lower technical losses, enhance grid reliability, and support the financial sustainability of the energy sector.