The loan will fund infrastructure upgrades to reduce energy losses and improve electricity supply reliability, focusing on key distribution companies

The Asian Development Bank (ADB) has approved a $200 million loan aimed at modernising Pakistan’s power distribution infrastructure. The Power Distribution Strengthening Project will focus on enhancing the country’s electricity distribution systems, particularly in the Lahore Electric Supply Company (LESCO), Multan Electric Power Company (MEPCO), and Sukkur Electric Power Company (SEPCO).

The project is designed to tackle critical challenges such as rising electricity demand, energy losses, and climate risks, while improving the resilience of Pakistan’s power infrastructure. The key components of the project include the installation of over 332,000 advanced metering infrastructures, 15,800 online transformer performance monitoring systems, and upgrades to 25 grid stations in LESCO and four grid stations in SEPCO.

Additionally, the project will replace high-loss feeder lines with more efficient aerial bundled conductor cables and optimise feeder line configurations for better grid performance, particularly during extreme weather events. The modernisation efforts are expected to significantly reduce energy losses, improve transmission efficiency, and enhance the reliability of electricity supply in the affected areas.

Yevgeniy Zhukov, ADB’s Director General for Central and West Asia, underscored the project’s importance in providing reliable electricity, which is essential for improving the quality of life in Pakistan. The project will also explore policy recommendations to improve the operational efficiency of the distribution companies, addressing financial pressures within the sector.

Since joining ADB, Pakistan has received over $52 billion in loans, grants, and financing, supporting various sectors including energy, infrastructure, and social services