ISLAMABAD: The Asian Development Bank has approved two loans worth 330 million dollars to help Pakistan construct a new high capacity transmission line from Islamabad to Faisalabad. The initiative is a central component of national efforts to expand the power grid, improve energy security and increase the flow of low cost renewable electricity from the northern region to major industrial and urban centres.
According to the ADB, the Second Power Transmission Strengthening Project is among the government’s highest priority investments. The project includes a 500 kilovolt transmission line spanning nearly 290 kilometres and the upgradation of critical grid infrastructure supplying the twin cities and Faisalabad. These improvements are expected to eliminate chronic bottlenecks in the north south power corridor and enable the transfer of up to 3200 megawatts of clean hydropower.
The financing package consists of a 285 million dollar loan from ADB’s ordinary capital resources and a 45 million dollar concessional loan supporting environmental objectives. The Manila based lender said the investment will help Pakistan rely less on imported fuels, improve grid reliability and support a shift toward a more sustainable and affordable energy mix. The National Grid Company of Pakistan, formerly NTDC, will implement the project.
ADB stated that the initiative will strengthen NGC’s institutional, operational and financial capacity. It will also support governance reforms, public engagement and gender equity programs as part of broader restructuring in the power sector. ADB Country Director for Pakistan Emma Fan said the project highlights the bank’s long standing partnership with Pakistan and its commitment to clean energy transition. She added that increased transmission capacity will reduce system costs and support long term economic growth.
The project aligns with Pakistan’s National Power Policy 2021, Vision 2025 and climate commitments which emphasise clean power generation, grid resilience and financial sustainability. The new infrastructure is expected to significantly reduce technical losses and improve supply stability for households, industries and commercial consumers.
Rising electricity demand, driven by population growth, industrial expansion and rural electrification, has put pressure on the existing grid. The new 500 kilovolt line is designed to meet current and future needs by completing essential transmission loops in Punjab and enhancing the transfer of renewable energy to the densely populated Islamabad and Faisalabad regions. The northern network already hosts over 10,000 megawatts of hydropower capacity, making this expansion critical for efficient power distribution.
