The Asian Development Bank (ADB) on Thursday approved $330 million in loans for Pakistan’s Second Power Transmission Strengthening Project.

The project is the Government of Pakistan’s top priority investment to expand the national transmission network and enable the evacuation of low-cost renewable and hydropower to major load centres.

According to a press release, “The project will construct a new 500-kilovolt, approximately 290-kilometre transmission line and upgrade critical grid infrastructure feeding Islamabad and Faisalabad.”

“These 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 of the country. This will help reduce reliance on imported fuels, improve energy security, and support Pakistan’s transition to a more affordable and sustainable energy mix,” said the ADB.

This initiative will support “Pakistan’s broader power sector reforms and contribute to state-owned enterprise (SOE) reforms by solidifying institutional, financial, operational, and governance improvements of the National Grid Company of Pakistan Limited (NGC) on its pathway to a modern grid operator.”

“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,” said 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 bank reaffirms to continue working with Pakistan and development partners to “advance reforms, strengthen sector governance, and expand access to greener and more reliable electricity.”