Pakistan’s Grid Upgrade Project Gets Major Boost From ADB
The grid upgrade project marks a major step for Pakistan’s energy system. ADB has approved a $330 million loan to support it. The plan aims to strengthen the national grid and improve clean-energy access across the country.
ADB Steps In With Key Financing
ADB will fund the construction of a 290-kilometre, 500-kilovolt transmission line. It will also support upgrades to grid stations in Islamabad and Faisalabad. As a result, the project will move up to 3,200 megawatts of clean energy from the north.
Officials say the shift will reduce reliance on imported fuels. It will also help lower long-term power costs. However, authorities have not confirmed the exact route of the new line. They continue to monitor challenges linked to other projects. For example, the Dasu Transmission Line faced delays due to irregularities and non-transparent tendering. These issues caused financial losses and raised concerns about overall project oversight.
ADB says the approval reflects its strong partnership with Pakistan. The loan package includes $285 million in commercial financing and $45 million in concessional lending. The bank also plans to continue supporting reforms in the power sector.
The project aligns with Pakistan’s National Power Policy 2021 and Vision 2025. Both plans focus on expanding clean-energy transmission and improving grid performance nationwide.
Pakistan Faces Broader Energy Pressure
The government is currently seeking nearly $1 billion from ADB and the World Bank. It hopes the support will stabilise foreign exchange reserves and ease budget pressure. However, ADB warns that high power costs and rising circular debt remain serious threats. Analysts expect another Rs500 billion to add to the debt load by year-end.
The National Grid Company will lead work on the grid upgrade project. Officials expect the new line to reduce losses and limit breakdowns. Therefore, communities across Pakistan may see a more stable and reliable power supply in the coming years.
