ISLAMABAD: The Asian Development Bank (ADB) has approved a $330 million loan to support Pakistan’s Clean Energy Transmission Project.
As part of the initiative, a 290-kilometer, 500-kilovolt transmission line will be installed to modernize the grid between Islamabad and Faisalabad.
This project aims to lower reliance on imported fuel while enhancing energy security. Upon completion, it is expected to supply electricity at more affordable rates and address power transmission challenges from the northern to southern regions.
ADB emphasized that this initiative marks an essential step toward sustainable development in Pakistan’s energy sector and will foster the growth of clean energy solutions.
The approved financing package includes a $285 million loan from ADB’s ordinary capital resources, accompanied by a $45 million concessional loan.
The funds will support the National Grid Company (NGC) in modernizing transmission infrastructure, strengthening institutional capacity, improving financial management practices, and advancing public engagement along with gender equity initiatives.
Emma Fan, ADB’s Country Director for Pakistan, highlighted that the project symbolizes the close collaboration between ADB and Pakistan in driving the clean energy transition.
She noted that expanding transmission capacity alongside the delivery of low-cost hydropower would enhance access to sustainable energy, reduce overall system costs, and contribute to Pakistan’s long-term economic development.
