ISLAMABAD, Mar 30: Pakistan’s energy sector expansion received a boost from foreign financing during the first seven months of FY2025-26, with multiple power generation and transmission projects supported by international development partners, according to official data.
A monthly report by the Ministry of Economic Affairs shows that external disbursements between July and January were directed toward strengthening electricity generation capacity and improving transmission infrastructure across the country, involving key public sector agencies.
Major hydropower projects receive funding
Among the largest disbursements, the Dasu Hydropower Project received $21.57 million during the reporting period. The project is being implemented by the Water and Power Development Authority to expand hydropower generation.
The Tarbela Fourth Extension Hydropower Project also secured $37.82 million, aimed at increasing output from the Tarbela Dam. Similarly, the Balakot Hydropower Development Project received $12.58 million to support electricity generation in Khyber Pakhtunkhwa.
The Mohmand Dam Hydropower Project was allocated $6.35 million during the same period, as part of broader efforts to enhance water-based energy capacity.
Investment in transmission infrastructure
In addition to generation projects, funding was directed toward improving the country’s power transmission network. The Second Power Transmission Enhancement Investment Program received $14.01 million to strengthen grid infrastructure.
The National Transmission Modernization Project secured $24 million to upgrade systems and improve electricity delivery efficiency. Both initiatives are being implemented by the National Transmission and Despatch Company.
Further support was provided to the Electric Distribution Efficiency Improvement Project, which received $4.76 million to reduce losses and enhance distribution performance.
Broader foreign assistance framework
According to the report, total project-related foreign assistance reached $1.90 billion during July–January FY2025-26. A significant portion of this financing was allocated to energy infrastructure, including hydropower development and transmission system upgrades.
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The data reflects ongoing cooperation between Pakistan and international development partners, with projects implemented across multiple regions to improve electricity supply and system reliability.
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