$200m Power Boost: Asian Development Bank Unleashes Massive Loan to Revolutionize Pakistan’s Electricity Distribution System

Islamabad (Daily Pakistan Online) The Asian Development Bank (ADB) has approved a $200 million loan to modernize Pakistan’s electricity distribution system, aiming to ensure a reliable power supply to distribution companies (DISCOs). The loan will finance improvements to the infrastructure of Lahore Electric Supply Company (LESCO), Multan Electric Power Company (MAPCO), and Sukkur Electric Power Company (SEPCO), enabling them to meet Pakistan’s growing electricity demands.

The project will modernize the electricity distribution system, reducing losses and enhancing the overall efficiency of the sector. A key component of the project involves the installation of 332,000 advanced meters, which will provide real-time data on electricity consumption and grid performance to the DISCOs. Additionally, the project will enable online transformer monitoring of the three DISCOs, further improving the distribution system’s efficiency.

The ADB loan will also support the upgrading of grid stations, including the conversion of four 66 kW grid stations of SEPCO to 132 kW, and the upgrading of 25 grids in LESCO to 132 kW. This modernization is expected to reduce losses, increase bill collection, and provide greater convenience to businesses. The project aligns with the ADB’s efforts to support Pakistan’s energy sector, which has faced significant challenges in recent years.