Strengthening the energy sector in Pakistan, ADB approves $330 million fund

The Asian Development Bank (ADB) has taken a major step to strengthen Pakistan’s energy sector and has approved funds worth $330 million. The money will be used under the “Second Power Transmission Strengthening Project”, the main objective of which is to increase the transmission of clean energy in the country.

According to ADB, a new transmission line of about 290 kilometres of 500 kV will be constructed through this project, which will make the transmission of hydropower more efficient. The bank says that this upgrade will allow up to 3200 MW of hydropower to reach the national grid easily.

The report states that the project will play an important role in modernising the grid infrastructure not only in Islamabad but also in the Faisalabad region. After this upgrade, the supply of affordable and environmentally friendly energy will improve, and the dependence on imported fuel will also be significantly reduced.

According to ADB, out of the amount of $330 million, $285 million is a general loan and $45 million is a concessional loan. The institution clarified that this project is an integral part of Pakistan’s comprehensive energy reform programme.