ADB approves $330 million loan to strengthen Pakistan’s power transmission network

A power company employee works on power lines in Lahore, Pakistan, on November 6, 2015. (Reuters/File)
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Updated 20 November 2025
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ADB approves $330 million loan to strengthen Pakistan’s power transmission network

  • Project involves construction of a new 290kilometer transmission line and grid infrastructure upgradation
  • ADB says loan will enable transfer of up to 3,200MWs to Islamabad, Faisalabad from hydropower plants in north

ISLAMABAD: The Asian Development Bank (ADB) on Thursday approved a $330 million loan for Pakistan to expand the national power transmission network under its Second Transmission Strengthening Project that aims to help Islamabad cut reliance on imported fuels and boost energy security, ADB said on Thursday.

The country of 250 million faces chronic power outages, soaring electricity costs and a ballooning circular debt in the power sector that has reached 1.7 trillion rupees ($5.9 billion), according to government data.

The ADB project entails the construction of a new 500-kilovolt, approximately 290-kilometer transmission line and upgrading grid infrastructure that serves Pakistan’s capital Islamabad and the city of Faisalabad.

It is expected to improve electricity reliability and could also benefit millions of households and industries while enhancing energy efficiency and supporting long-term economic growth in the South Asian nation.

“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,” the bank quoted its Country Director for Pakistan Emma Fan as saying.

“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.”

ADB said the investments will enable the transfer of up to 3,200 megawatts of clean energy from hydropower plants in the north of Pakistan, highlighting that it will also help reduce reliance on imported fuels and support the country’s transition to a sustainable energy mix.

“ADB’s financing package comprises a $285 million loan from its ordinary capital resources and a $45 million concessional loan,” it added.

The loan will support state-owned enterprise reforms by “solidifying institutional, financial, operational and governance improvements” of the National Grid Company (NGC) of Pakistan Limited, ADB said.

Pakistan relies heavily on external borrowing and narrowly avoided default in 2023 after a political crisis compounded an economic downturn. A $7 billion International Monetary Fund (IMF) bailout helped unlock further loans from friendly nations, staving off collapse.

In Aug., ADB had approved a $410 million package to develop Pakistan’s Reko Diq copper and gold mine, which is one of the largest underdeveloped mines in the world. In late 2023, the bank had loaned Pakistan $250 million to expand its high-voltage transmission network in Punjab and Khyber Pakhtunkhwa provinces.


Pakistani man convicted in US in political assassination plot tied to Iranian paramilitary

Updated 07 March 2026
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Pakistani man convicted in US in political assassination plot tied to Iranian paramilitary

  • Asif Merchant, 47, worked for Pakistani banks for decades before going into clothing and other businesses
  • He testified he met a Revolutionary Guard operative who gave him countersurveillance training, assignments

NEW YORK: A Pakistani business owner who tried to hire hit men to kill a US politician was convicted Friday in a trial that showcased allegations of Iran-backed plotting on American soil.

As the Iran war unfolded in the Mideast, Asif Merchant acknowledged in a US court that he sought to put an assassination in motion during the 2024 presidential campaign — a plot that was quickly disrupted by American investigators before it had a chance to proceed.

A jury in Brooklyn convicted Merchant on terrorism and murder for hire charges.

The verdict after only a couple hours of deliberations followed a weeklong trial that included remarkable testimony from Merchant himself.

Merchant told the jury he was carrying out instructions from a contact in the Islamic Republic’s powerful paramilitary Revolutionary Guard. According to Merchant, the handler never specified a target but broached names including then-candidate Donald Trump, then-President Joe Biden and Nikki Haley, the former UN ambassador who was also in the race for a time.

The Iranian government has denied trying to kill US officials.

The nascent plot fell apart after Merchant showed an acquaintance what he had in mind by using objects on a napkin to depict a shooting at a rally. He asked the man to help him hire assassins. Instead, he was introduced to undercover FBI agents who were secretly recording him, as had the acquaintance.

Merchant told the supposed hit men he needed services that could include killing “some political person” and paid them $5,000 in cash in a parked car in Manhattan.

“This man landed on American soil hoping to kill President Trump — instead, he was met with the might of American law enforcement,” US Attorney General Pam Bondi said in a statement released after the conviction.

Merchant’s attorney, Avraham Moskowitz, didn’t immediately reply to a message seeking comment.

Merchant, 47, worked for Pakistani banks for decades before going into clothing and other businesses. He has two families, in Pakistan and Iran, and he sometimes visited the US for his garment business.

Merchant testified that he met a Revolutionary Guard intelligence operative about three years ago. The contact gave him countersurveillance training and assignments including the assassination scheme, Merchant said.

He maintained that he had to do his handler’s bidding to protect loved ones in Iran. The defendant said he reluctantly went through the motions but thought he’d be arrested and explain his situation to authorities before anyone was killed.

“I was going along with it,” he said, speaking in Urdu through a court interpreter.

Prosecutors emphasized that Merchant admitted taking steps to enact the plan on behalf of the Revolutionary Guard, which the US considers a foreign terrorist organization, and he didn’t proactively go to authorities.

Instead, he was packing for a flight to Pakistan when he was arrested on July 12, 2024, a day before an unrelated attempt on Trump’s life in Butler, Pennsylvania. Officials said it appeared the Butler gunman acted alone but that they had been tracking a threat on Trump’s life from Iran, a claim that the Islamic Republic called “unsubstantiated and malicious.”

When Merchant subsequently spoke to FBI agents to explore the possibility of a cooperation agreement, he didn’t say he had acted out of fear for his family.

Prosecutors argued that he didn’t back up a defense of acting under duress. Merchant sought to persuade jurors he simply didn’t think the agents would believe him because they seemed to “think that I am some type of super-spy,” which he said he was “absolutely not.”