ADB approves $330m loan for clean energy transmission project in Pakistan
Business
Initiative to reduce dependence on imported fuel and improve energy security.
ISLAMABAD (Dunya News) – The Asian Development Bank (ADB) on Thursday approved a $330 million loan for Pakistan’s Clean Energy Transmission Project.
Under this project, a 290-kilometer long, 500-kilovolt transmission line will be laid, upgrading the grid from Islamabad to Faisalabad.
According to the announcement, the initiative will reduce dependence on imported fuel and improve energy security. Once completed, the project will help provide electricity to consumers at lower rates and resolve power-sector bottlenecks from north to south.
ADB stated that this project will be an important step toward sustainable development in Pakistan’s energy sector and the promotion of clean energy.
According to the press release, the ADB financing package includes a $285 million loan from its ordinary capital resources and a $45 million concessional loan.
The funding will help NGC upgrade transmission infrastructure, enhance institutional capacity, improve financial management, and advance public outreach and gender equity measures.
ADB Country Director for Pakistan Emma Fan said the project reflects the bank’s strong partnership with Pakistan and their joint commitment to clean energy transition. She added that expanding transmission capacity and delivering low-cost hydropower would increase access to clean energy, reduce system costs, and support Pakistan’s long-term sustainable economic growth.
The release stated that the Second Power Transmission Strengthening Project aligns with Pakistan’s National Power Policy 2021, Vision 2025, and Nationally Determined Contributions 2021, focusing on energy security, climate resilience, affordable clean power, and sustainable development.
It added that the new infrastructure will cut technical losses, improve grid reliability, and support the sector’s financial health. ADB reaffirmed its commitment to working with Pakistan and global partners to advance reforms, enhance governance, and expand access to cleaner and more reliable electricity.
