Pakistan and the Asian Development Bank (ADB) signed a $200 million loan agreement on Tuesday to support the Power Distribution Strengthening Project.
According to a report by Pak Observer, the loan will enhance the power distribution system by modernizing infrastructure and reducing energy losses across key areas of the country. The agreement was signed by Dr. Kazim Niaz, Secretary of the Economic Affairs Division, and Asad Aleem, ADB’s Deputy Country Director.
The project will benefit three major distribution companies: Lahore Electric Supply Company (LESCO), Multan Electric Power Company (MEPCO), and Sukkur Electric Power Company (SEPCO). The improvements will include the installation of advanced metering infrastructure, data management systems, and asset performance management systems, aimed at enhancing operational efficiency.
Dr. Niaz stressed the importance of efficiently utilizing the ADB loan and urged all stakeholders, particularly the distribution companies, to ensure the timely completion of the project. He also expressed gratitude for ADB’s consistent support in addressing Pakistan’s power sector challenges.
On his part, Asad Aleem thanked the Pakistani government for its proactive engagement and confirmed that ADB would continue to work closely with the Ministry of Economic Affairs and other relevant stakeholders to ensure the project aligns with Pakistan’s broader development priorities.
![Local residents at the Swat River, which is overflowing due to pre-monsoon heavy rains in the area on the outskirts of Mingora, the main town of Pakistan's Swat Valley [Sherin Zada/AP]](https://mmnews.tv/wp-content/uploads/2025/06/Flooding-in-Swat-river-350x250.jpg)
