ISLAMABAD: The Asian Development Bank (ADB) has approved $250 million loan for Pakistan that will help the South Asian country deliver reliable electricity by expanding and improving its power transmission network in the Punjab and Khyber Pakhtunkhwa provinces, the Bank said on Friday.
Pakistan has enough installed capacity to meet its demand for electricity, but the South Asian country lacks adequate resources and cannot afford to invest in new infrastructure and power lines, which often result in transmission losses.
In January this year, the country suffered a nationwide blackout due to a frequency failure in the national grid, which happened because of a major mismatch between demand and supply. It was the second nationwide shutdown in three months.
The ADB said the $250 million loan was part of its Power Transmission Strengthening Project to increase transmission capacity of Pakistan’s national grid by expanding high-voltage transmission network to close 500 kilovolt (kV) and 220 kV transmission line loops, and reduce transmission losses by replacing old transmission lines.
“Reliable power supply is essential to inclusive, sustainable economic growth, and it will also provide economic opportunities to rural communities,” said Yevgeniy Zhukov, ADB director-general for Central and West Asia.
“We are pleased to continue supporting Pakistan in its efforts to achieve energy security while improving energy efficiency.”
The project will complement ADB’s ongoing support to Pakistan’s National Transmission & Despatch Company Limited (NTDC) aimed at ensuring energy security, climate resilience, and increased transmission capacity to deploy sufficient, reliable, clean, and cost-effective energy, according to ADB.
Aside from strengthening power transmission, it will also enhance the project and financial management of NTDC as well as its capacity to incorporate climate resilience in planning and operations.
“To promote gender equality and women’s involvement in the energy sector, ADB will develop guidelines for mentorships, conduct awareness campaigns, establish childcare centers, and provide technical training to female staff in the NTDC,” ADB Senior Energy Specialist Takhmina Mukhamedova said.
“This project also includes livelihood skills development for women in the project areas to improve their economic opportunities, and training for local communities to enable them to respond to climate-induced natural hazards.”
Pakistan was a founding member of ADB. Since 1966, the bank has committed over $52 billion in public and private sector loans, grants, and other forms of financing to promote inclusive economic growth in Pakistan and improve the country’s infrastructure, energy and food security, transport networks, and social services.
ADB said it was committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty. The bank, which was established in 1966, is owned by 68 members — 49 from the region.
ADB approves $250 million loan to help Pakistan improve power transmission
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ADB approves $250 million loan to help Pakistan improve power transmission
- Pakistan has faced transmission losses due to its inability to invest in new infrastructure and power lines
- The ADB loan will help the South Asian country reduce these losses by replacing old transmission lines
UAE-Pakistan trade pact in ‘final stage of signing,’ envoy says in address to Lahore chamber
- UAE ambassador tells business leaders Comprehensive Economic Partnership Agreement near signing
- Chamber cites $7.8 billion remittances from UAE in 2024, urges broader cooperation beyond petroleum trade
ISLAMABAD: The Lahore Chamber of Commerce & Industry (LCCI) on Wednesday quoted the UAE’s ambassador as saying the Emirates and Pakistan were in the “final stage” of signing a Comprehensive Economic Partnership Agreement (CEPA) to enhance trade and remove obstacles.
Pakistan and the UAE maintain close economic ties, with the Gulf state serving as one of Islamabad’s largest trading partners and a major source of remittances. Trade between the two countries currently stands at around $8–10 billion, according to figures from the LCCI, while millions of Pakistanis live and work in the UAE. A Comprehensive Economic Partnership Agreement, a broad trade framework aimed at reducing tariffs, easing market access and strengthening investment flows, would formalize and potentially deepen those ties.
Speaking at the Lahore Chamber, UAE Ambassador Salem Mohammed Al Zaabi said the CEPA would help remove business obstacles and deepen economic ties between the two countries.
“Pakistan and the UAE are at the final stage of signing a Comprehensive Economic Partnership Agreement, which would significantly boost bilateral trade and remove business obstacles between the two countries,” Al Zaabi was quoted as saying in a statement issued by the Lahore Chamber.
He added that the existing trade volume of around $8–10 billion did not reflect the full potential of the relationship and his government had a “clear directive” to double the figure as soon as possible.
Al Zaabi said the UAE was expanding investments in Pakistan in sectors including infrastructure, ports, aviation, agriculture, minerals and railways.
He said discussions with Pakistan’s Railway Ministry were progressing and that new agreements related to supply chain connectivity from northern regions to Karachi, including the possibility of a dry port, would be announced soon. He added that the Joint Business Council between the two countries was being activated and efforts were underway to convene its meeting to enhance institutional cooperation.
The UAE ambassador also outlined steps being taken to streamline visa procedures and improve skilled labor mobility.
Referring to the visa process, Al Zaabi said both countries were working to streamline procedures through digital systems and appreciated the efforts of Pakistan’s Ministry of Interior, according to the LCCI statement. He said discussions were underway with the Punjab Skilled Labor Authority to enhance cooperation in skilled workforce mobility.
He added that he was “personally working at operational and technical levels to ensure that all signed agreements, including CEPA and other trade frameworks, are fully implemented.”
The envoy said the UAE was rapidly shifting toward an artificial intelligence-driven and digitized economy, with nearly 99 percent of government services available online.
Highlighting his country’s focus on information technology, digital banking and innovation, the ambassador invited the Lahore Chamber to share a comprehensive document outlining challenges and investment opportunities. He said the UAE Embassy would consider recommendations from the business community and extend facilitation to investors from both sides, adding that special consideration would be given to visa recommendations forwarded by the Chamber for genuine business cases.
He also acknowledged the contribution of the Pakistani community to the UAE’s development, particularly in aviation and finance, and noted that the UAE economy had diversified, reducing oil dependence to below 25 percent.
LCCI President Faheem Ur Rehman Saigol described the UAE as one of Pakistan’s most important trading partners in the Middle East and a major source of remittances.
He said remittances from the UAE reached $7.8 billion in 2024, while Pakistan’s exports to the UAE stood at $2.1 billion in the 2024–25 fiscal year. Imports from the UAE were around $8 billion, largely consisting of petroleum products, according to the Chamber’s statement.
The figures highlight a persistent trade imbalance, with Pakistan importing significantly more from the UAE than it exports, even as millions of Pakistani workers live and work in the Gulf state.
Saigol said there was “vast untapped potential” for cooperation in renewable energy, agriculture and food processing, information technology, logistics, construction, tourism, health care and mining. He proposed establishing dedicated display centers for Pakistani products in the UAE, leveraging the country’s role as a global re-export hub, and called for stronger engagement through trade delegations, business-to-business meetings and joint ventures.
